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Consumption & class in evolutionary macroeconomics

Rengs, Bernhard and Scholz-Wäckerle, Manuel (2018) Consumption & class in evolutionary macroeconomics. Journal of Evolutionary Economics. pp. 1-35. ISSN 1432-1386

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Abstract

This article contributes to the field of evolutionary macroeconomics by highlighting the dynamic interlinkages between micro-meso-macro with a Veblenian meso foundation in an agent-based macroeconomic model. Consumption is dependent on endogenously changing social class and signaling, such as bandwagon, Veblen and snob effects. In particular, we test the macroeconomic effects of this meso foundation in a generic agent-based model of a closed artificial economy. The model is stock-flow consistent and builds upon local decision heuristics of heterogeneous agents characterized by bounded rationality and satisficing behavior. These agents include a multitude of households (workers and capitalists), firms, banks as well as a capital goods firm, a government and a central bank. Simulation experiments indicate coevolutionary dynamics between signaling-by-consuming and firm specialization that eventually effect employment and consumer prices, as well as other macroeconomic aggregates.

Item Type: Article
Keywords: Evolutionarymacroeconomics, Agent-basedmodelling, Micro-meso-macro, Conspicuous consumption, Social class, Firm specialization
Classification Codes: JEL classification B52, C63, E21, E23, L11
Divisions: Departments > Sozioökonomie > Sozialpolitik > Demographie > Wittgenstein Centre
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 18 Oct 2018 14:59
Last Modified: 30 Oct 2018 19:50
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/87441/
URI: http://epub.wu.ac.at/id/eprint/6596

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