We solve Ireland's (1994) conspicuous consumption model (where social-status concerns are introduced into the utility function) for Cobb-Douglas (CD) utility. In the resulting generalized CD consumer model, Engel curves are no longer limited to linearity. In the homothetic CD case, total...

Expanding from Veblen's conspicuous consumption theory, this paper provides new explanations on China's household saving behavior. Using provincial level data, it finds evidence that urbanization, increased mobility of the population, and a greater degree of openness all depress household...

We examine theoretically demand in a two-good economy where the demand of one good is influenced by either a spillover effect in the form of an externality from other consumers' choices and or a conformity effect representing a need for making similar choices as others. A positive spillover...