Relative consumption, relative wealth and growth

In a growth model where individuals care about their social status measured both by consumption and wealth comparisons, we show that status comparison in wealth heightens economic growth, while status comparison in consumption may affect negatively economic growth.     

Culture and Economic Systems

A bstract .   Applying a cluster analysis to the results of the World Value Study, this article shows that the OECD nations have five distinct patterns of cultural characteristics. Moreover, these five cultural systems are almost the same as a classification of economic systems that have been derived from a cluster analysis of their economic institutions. A comparison of the cultural characteristics of East and West Germany suggests that the economic system has relatively little influence on the cultural systems. Instead, in a democracy, where the economic system is not imposed by force, the cultural characteristics are more likely to determine the economic system, rather than the reverse.     

The 'New Class': Analysis of the Concept, the Hypothesis and the Idea as a Research Tool

A bstract . The concept of the 'New Class' often is invoked to explain not only why the capitalist countries of the West are drifting leftwards into socialism but also why socialist nations of East Europe have totalitarian governments, tolerate gross economic inefficiencies, and exploit their workers. Certain critical issues underlying such an approach that are relevant to political economists , especially those interested in the changing boundary between the public and private sectors of the economy , are examined. The concept is found to rely on hypotheses which are not (easily) testable and the argument for its existence to be based on premises that are dubious. Special attention is given to hypotheses in public finance employing the concept in an attempt to explain increasing public expenditures ; these are found wanting.     

Nonparametric tests of collectively rational consumption behavior: An integer programming procedure

We present an IP-based nonparametric (revealed preference) testing procedure for rational consumption behavior in terms of a general collective model, which includes consumption externalities and public consumption. An empirical application to data drawn from the Russia Longitudinal Monitoring Survey (RLMS) demonstrates the practical usefulness of the procedure. Finally, we present extensions of the testing procedure to evaluate the goodness-of-fit (accounting for optimization error as well as measurement error) of the collective model subject to testing.     

Theory creation and the methodological foundation of Post Keynesian economics

For the last 15 years there have been extensive discussionsabout the foundations of Post Keynesian economics. From thesediscussions, Post Keynesians have reached the consensus thattheir economics is based on a philosophical foundation of realismand critical realism. However, the methodological foundationof Post Keynesian economics, which refers to the methodologicalguidelines used for creating and developing theory, has receivedrelatively less discussion and development. The aim of thispaper is to stimulate discussion in this area by advocatingthat the method of grounded theory is consistent with criticalrealism and is a better and more developed set of guidelinesfor theory creation than the currently accepted alternatives.