Date of Award
2018
Document Type
Thesis
Degree Name
Bachelors
Department
Social Sciences
First Advisor
Khemraj, Tarron
Area of Concentration
Economics
Abstract
This thesis sets out to answer two questions: Are the current consumption theories that Economists use in determining what is dependent on consumption accurate to express what is occurring in the market, and if the consumption theories that Economists currently use to determine the model of consumption are incorrect what model could be used or estimated to determine what consumption is dependent on? We can survey the conventional theories of consumption that have been proposed by Keynes, Kuznets, Modigliani, and Friedman. Reviewing literature on the Bandwagon, Snob, and Veblen effect we can determine the how the market is shifting. Using data from the FRED we test each model using Eview9 in the form of an ARDL to determine if we can accept or reject the null hypothesis. Finally, we conclude that some of the consumption theories that have been conceived by these Economists are incorrect and we can reject the null hypothesis and the consumption theory with developments to Veblen’s Consumption theory is the most accurate model with the least breaks in the model when running the recursive residual test.
Recommended Citation
Blaha, Raymond, "CONSPICUOUS CONSUMPTION HYPOTHESIS" (2018). Theses & ETDs. 5477.
https://digitalcommons.ncf.edu/theses_etds/5477