The theme of this extensive book is the relationship between consumption and growth in the context of the long run theory of effective demand. Taking Schumpeter's views on economic development as a starting point, the author proposes an original framework for the analysis of consumption patterns as an element of growth in advanced market economies. The book examines the role of demand with respect to the theory of structural change and the theory of consumption at both the micro and macro level. The theoretical framework is employed to analyze the consumption-growth relationship and its implications for the process of structural evolution.
The actual dynamics of consumption are examined in terms of the cycle of expansion in the US economy during the 1980s. The author concludes that there is a distinct shift towards a pattern of `consumption deepening' that explains the consumption fuelled recovery of the 1980s and mirrors a process of `intensive growth' of the market. This interpretation sheds light on the underlying process sustaining US expansion during the 1990s and the questions facing advanced market economies which have begun to experience the emergence of an `internet scenario' in terms of development.
In focusing on the relationship between consumption changes and the growth process, this book distinguishes itself from much of the literature on the subject which deals with these two aspects individually. Davide Gualerzi breaks genuinely new ground with his empirical and theoretical research. This book will appeal to economists interested in growth and economic development, scholars in related social sciences, and the wide base of economists and academics sympathetic to new approaches to the problem of economic growth.
Davide Gualerzi, Associate Professor, Department of Economic Sciences "Marco Fanno", School of Political Sciences, University of Padua, Italy
Contents: Introduction 1. Economic Development, Technical Change and Demand 2. Pasinetti's Structural Dynamics and Demand Theory 3. Consumption Theory 4. Consumption and Growth 5. Towards a Theory of the Consumption-Growth Relationship 6. Empirical Analysis and the Recovery of the US Economy in the 1980s 7. Macroeconomic Trends and the Evolution of the Industrial Structure 8. Consumption Expenditure Composition 9. Market Development and Output Composition 10. The Structural Dynamics of the 1980s: Recovery and the Transformation of the Consumption Sphere 11. Composition Deepening and Intensive Growth: A New Hypothesis Appendices Bibliography Index