The Rise of Mass Consumption Societies

Posted: 4 Sep 2003

See all articles by Kiminori Matsuyama

Kiminori Matsuyama

Northwestern University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Abstract

This paper studies mechanisms behind the rise of mass consumption societies. The development process depicted follows the Flying Geese pattern, in which a series of industries take off one after another. As productivity improves in these industries, each consumer good becomes affordable to an increasingly large number of households, which constantly expand the range of goods they consume. This in turn generates larger markets for consumer goods, which leads to further improvement in productivity. For such virtuous cycles of productivity gains and expanding markets to occur, income distribution should be neither too equal nor too unequal. With too much equality, the economy stagnates in a poverty trap. With too much inequality, the development stops prematurely.

Suggested Citation

Matsuyama, Kiminori, The Rise of Mass Consumption Societies. Available at SSRN: https://ssrn.com/abstract=327062

Kiminori Matsuyama (Contact Author)

Northwestern University - Department of Economics ( email )

2003 Sheridan Road
Evanston, IL 60208
United States
847-491-8490 (Phone)
847-491-7001 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
887
PlumX Metrics