In this paper, we first model the dynamics of an economy, making use of a simple, almost trivial circular flow analysis. Then, we demonstrate the effects of keeping up with the Jonesesʺ as well as of keeping ahead of the Smithsʺ in private consumption and the role of innovation and imitation...

This PhD dissertation consists of three self-contained chapters in the field of macroeconomics. The first two chapters rely a large scanner data set from the United States. The data set contains detailed pricing and sales information from retail stores as well as comprehensive information on...