The Capitalist Spirit and Endogenous Growth

The aim of the study is to investigate the influence of the capitalist spirit in conjunction with the distribution of income on economic growth. The capitalist spirit is represented by the fact that savings rates increase with increasing relative income. We extend an endogenous AK growth model in an overlapping generational framework by implementing imperfect competition and Cournot competition. Using this model, we investigate the influence of profits on the intra- and inter-generational distributions of income and economic growth. While increasing incomes lead to a more unequal intra-generational distribution and to a redistribution of income from the old to the young generation, the impact on economic growth is in general ambiguous, although under specific assumptions it becomes positive. Furthermore, the model shows that increasing market power of firms is associated with declining labor and capital shares, declining interest rates, and an increased wealth-to-income ratio.

Student Perspectives on Business Education in the USA

This chapter examines the academic and personal trajectory a student takes from before they ever set a foot on campus to beyond a college degree. By first assessing the private vs. public school dynamics in Southern California, the author documents the ways in which these systems are a reaction to the American college system, and how the prevailing psyche around college as being an ultimate end for students and their parents plays out. Reflecting on personal choices and circumstances unique to the individual yields a variety of challenges and benefits posed by pursuing a college degree, all of which influence what to study and where to pursue it. Influences range from relative income to geographical location and parental occupation. Through an examination of these elements, the relative importance and weight of a college degree in light of developments accelerated by the COVID-19 pandemic leaves the collegiate system and the students who are at the center of it in an unparalleled position.

SOCIO-ECONOMIC AND PSYCHOLOGICAL CORRELATES OF FASHION CONSCIOUSNESS OF CONSUMERS

Fashion conscious people allocate a large part of their budget on a latest fashion. The present study assessed the socio-economic and psychological factors that play significant role in fashion consciousness. A convenient sample of 200 individuals (men=100 and women=100) of age between 22 and 44 years from Multan, Pakistan was taken to study the correlates of fashion consciousness. The estimates of ordinary least square showed that education, monthly income, materialism, and media exposure had significant positive impact, and price consciousness had significant negative impact on fashion consciousness of the sample, which partially support consumption theories (e.g., Absolute Income Hypothesis’ and ‘Relative Income Hypothesis). The study has implications for both consumers and producers. Key Words: Fashion consciousness, materialism, price consciousness, absolute income hypothesis, relative income hypothesis

A Survey on Income Inequality in China

After China’s recent great success in eliminating absolute poverty, addressing relative income inequality becomes a more important issue. This survey finds that income inequality rapidly increased in the first three decades since 1978 but stabilized and slightly declined in the past decade, consistent with the well-known Kuznets hypothesis. In addition to documenting the trend and patterns over time and across groups and regions, seven sources of income inequality are systematically discussed with an effort to reconcile and extend the existing literature. Furthermore, a negative correlation is documented between income inequality and intergenerational mobility, consistent with the Great Gatsby curve observed in developed countries. (JEL D31, D63, O15, P36)

Do Demographics Matter in Consumer Materialism?

This paper aims to investigate the effects of personal characteristics such as gender, income, education and age on consumer materialism. Research hypotheses are based on both existing marketing literature and an additional integration of gender studies literature in order to further the study of materialism. By using random sampling and surveying 1000 respondents living across different regions in Lithuania, the results show significant differences along gender, age, self-perceived relative income and education in terms of consumers’ materialistic dispositions. The study confirms that younger consumers are more inclined to materialistic values than older ones. Women differ from men on materialism centrality, as well as happiness and success measures. Regarding consumers’ self-perceived relative income, Lithuanians with low income are more prone to aspire to material possessions. Furthermore, research indicates higher rates of consumer materialism to appear among less educated individuals. This is one of the first representative studies in Lithuania revealing what effects different demographic consumer characteristics have on materialistic behaviour. Our findings have some practical implications; for example, they show that vulnerable segments of the population are more susceptible to materialism, necessitating educational policies to reduce such behavior and encourage a more responsible approach. As a result, these educational programs should be tailored to these individuals, with a greater emphasis on the risks associated with overconsumption.

How Income Influences Health: Decomposition Based on Absolute Income and Relative Income Effects

Previous research has confirmed a positive association between income and health, but there are still a lot of inconsistencies on how income affects health. Indeed, this impact is caused by overlaying of absolute income and relative income effects, and only by decomposing and comparing their relative importance within an integrated framework can suggestions be made for health inequalities and health intervention. To deal with this issue, using the panel data from the 2011, 2014, and 2017 waves of the Chinese Longitudinal Healthy Longevity Survey (CLHLS), a well-designed research model is established to decompose and explore the impact. Our results indicate that relative income, rather than absolute income, has a significant negative impact on health performance, and that these associations may be causal in nature. The health inequity persists throughout the life cycle, but it remains relatively stable, without significant expansion or convergence. To some extent, the research-proposed models enrich the related literature on associations between income and health, and the empirical results suggest that as China moves to the stage of higher incomes and accelerated aging, the Chinese government should pay more attention to income inequality and be alert to the risks of “income-healthy poverty” traps.

Cigarette affordability in Canadian provinces: a 10-year review

The association between pricing and cigarette consumption is long-established. However, the effects of taxation alone can be diminished if relative income increases. Therefore, affordability is seen as a key determinant of demand for cigarettes, as it combines the impact of changing prices with economic growth or wage increases. This brief analysis employs methods used by the World Health Organization in examining cigarette affordability, and explores the trend in affordability across Canadian provinces over a 10-year period, from 2009 to 2019. The discussion illustrates how monitoring affordability over time can help policy makers in Canadian provinces design tobacco taxation for maximum impact.