Date of Award
Spring 2014
Degree Name
Bachelor of Science
Major
Economics
First Advisor
Professor Mark Setterfield
Abstract
Over the past 30-40 years, consumer debt has grown substantially faster than income in the United States. As a result, consumption has grown fast relative to national income. The economic growth that we have experienced in the US economy has shown to be unreliable as demonstrated by the Great Recession in 2007-2008. By creating unstable growth, consumer behavior could be an explanation behind the recession as well as the cause of future economic downturns. This paper implements a new theory of consumption practices and tests for the stability of economic growth and sustainability of consumer debt by using a neo-Kaleckian growth model.
Recommended Citation
Rees, Jeremy, "Distribution and Debt: How Consumption and Household Debt Can Affect Economic Growth". Senior Theses, Trinity College, Hartford, CT 2014.
Trinity College Digital Repository, https://digitalrepository.trincoll.edu/theses/357
Comments
Senior thesis completed at Trinity College for the degree of Bachelor of Science in Economics.