period has been the theory of upward-looking consumption externalities leading to expenditure cascades. We propose a … parsimonious model of upward-looking consumption at the micro level mediated by perception networks with empirically plausible … knowledge, our approach is the first to make the reference group to which conspicuous consumption relates explicit. Our model …

We study an Agent-based model of household-bank relationships where households borrow for the purpose of consumption …. Desired consumption is driven by households disposable income as well as a social norm of consumption. If households care … conduct several computational experiments, where the absence of the social consumption norm (Joneses effect) functions as …

credit to finance consumption. Furthermore, workers seek to minimize the difference between investors’ and their own … consumption level. Qualitatively, an income redistribution from labor to capital leads to consumer credit dynamics that are in …

In this study, we set up a DSGE model with upward looking consumption comparison and show that consumption … credit to finance consumption. Furthermore, workers condition their consumption choice on the investors' level of consumption … credit moments, our proposed model significantly outperforms a model version in which we abstract from consumption …