Abstract
This study investigates the relationship between government purchases and conspicuous consumption and carries out an empirical analysis of their relationship in Korea and in the United States. This study hypothesizes that conspicuous consumption is positively affected by government purchases. Economic theories, such as fiscal policy, Ricardian and non-Ricardian consumer theory, and the Veblen effect, have been addressed to systematically examine the relationship between government purchases and conspicuous consumption. Data from CEIC and FRED in the fiscal years of 2003 to 2017 have been selected based on two countries, Korea and the United States, to test the above hypothesis. Results were found to be significant for the relationship between government purchases and conspicuous consumption in both countries, which validated the hypothesis of a positive relationship between government purchases and conspicuous consumption.
Advisor
Jia, Bijie
Department
Business Economics
Recommended Citation
Chen, Tailun, "An Investigation of the Relationship between Government Purchases and Conspicuous Consumption" (2018). Senior Independent Study Theses. Paper 8141.
https://openworks.wooster.edu/independentstudy/8141
Disciplines
Fashion Business
Keywords
Government purchases, Conspicuous consumption, Veblen effect
Publication Date
2018
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2018 Tailun Chen