that an increase in savings lowers economic growth, as reduced consumption negatively affects investment. A number of … studies also argue that due to the adjustment costs and frictions in labor and goods markets, a reduction in consumption … negatively affects economic growth. The paper argues that a significant reduction in consumption causes a recession, but a slight …

Productive consumption enables the satisfaction of current needs and simultaneously increases the productive potential … of labour. From the perspective of growth theory, the productive-consumption hypothesis is of fundamental interest … because it modifies the harsh intertemporal consumption trade-off traditionally assumed. Two fundamental possibilities for …