Date of Award

Spring 2014

Degree Name

Bachelor of Science



First Advisor

Professor Mark Setterfield


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.


Senior thesis completed at Trinity College for the degree of Bachelor of Science in Economics.