DUAL DYNAMICS OF SAVINGS IN GLOBAL CONSUMPTION DISPARITIES

Muhammet Fatih Elçin

Makale detayları

DUAL DYNAMICS OF SAVINGS IN GLOBAL CONSUMPTION DISPARITIES

Yazarlar:

Muhammet Fatih Elçin

Yayıncı:

Marmara University

Ana Başlıklar:

Applied Macroeconometrics | Macroeconomic Theory

Dergi:

Journal of Research in Economics Vol.9 Issue 1, pp.12-30

Belge Tipi:

Makale

Yayın Tarihi:

3/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001342234

pISSN:

2636-8307

Anahtar kelimeler:

Özet:

 This paper examines global consumption inequality through empirical and theoretical approaches. To provide a clear perspective on the magnitude of consumption inequality globally, the study utilizes the Penn World Tables 10.01 dataset covering the period from 1960 to 2019. To do this, countries are grouped into five categories based on their consumption levels. The analysis based on the categorization reveals a significant rigidity in these groups, with lower-tier countries facing challenges in moving to higher consumption categories. In contrast, top-tier countries consistently retain their positions over decades. Moreover, the proportion of the global population residing in the lowest consumption group has remained remarkably high in the past six decades, further emphasizing global inequalitys entrenched and severe nature. The paper broadens the theoretical framework by extending Solows 1956 perspective on how savings rates influence economic disparities among countries. While the Solow-Swan model traditionally highlights the role of higher savings in fostering economic growth and decreasing economic inequalities, this study incorporates Pasinettis 1962 perspective, which argues that increased savings among lower-income groups may disproportionately benefit wealthier groups, potentially intensifying inequality. Using Gillmans 2011 general equilibrium model, the paper bridges these theoretical insights to examine how class-based economic differences shape the outcomes of savings behavior. Empirical results derived from the theoretical model show that the impact of savings rates on global consumption patterns varies significantly depending on the economic structures of different countries. This analysis underscores the importance of designing economic policies sensitive to each countrys unique characteristics and structural realities rather than applying uniform, one-size-fits-all solutions.

 This paper examines global consumption inequality through empirical and theoretical approaches. To provide a clear perspective on the magnitude of consumption inequality globally, the study utilizes the Penn World Tables 10.01 dataset covering the period from 1960 to 2019. To do this, countries are grouped into five categories based on their consumption levels. The analysis based on the categorization reveals a significant rigidity in these groups, with lower-tier countries facing challenges in moving to higher consumption categories. In contrast, top-tier countries consistently retain their positions over decades. Moreover, the proportion of the global population residing in the lowest consumption group has remained remarkably high in the past six decades, further emphasizing global inequalitys entrenched and severe nature. The paper broadens the theoretical framework by extending Solows 1956 perspective on how savings rates influence economic disparities among countries. While the Solow-Swan model traditionally highlights the role of higher savings in fostering economic growth and decreasing economic inequalities, this study incorporates Pasinettis 1962 perspective, which argues that increased savings among lower-income groups may disproportionately benefit wealthier groups, potentially intensifying inequality. Using Gillmans 2011 general equilibrium model, the paper bridges these theoretical insights to examine how class-based economic differences shape the outcomes of savings behavior. Empirical results derived from the theoretical model show that the impact of savings rates on global consumption patterns varies significantly depending on the economic structures of different countries. This analysis underscores the importance of designing economic policies sensitive to each countrys unique characteristics and structural realities rather than applying uniform, one-size-fits-all solutions.

 This paper examines global consumption inequality through empirical and theoretical approaches. To provide a clear perspective on the magnitude of consumption inequality globally, the study utilizes the Penn World Tables 10.01 dataset covering the period from 1960 to 2019. To do this, countries are grouped into five categories based on their consumption levels. The analysis based on the categorization reveals a significant rigidity in these groups, with lower-tier countries facing challenges in moving to higher consumption categories. In contrast, top-tier countries consistently retain their positions over decades. Moreover, the proportion of the global population residing in the lowest consumption group has remained remarkably high in the past six decades, further emphasizing global inequalitys entrenched and severe nature. The paper broadens the theoretical framework by extending Solows 1956 perspective on how savings rates influence economic disparities among countries. While the Solow-Swan model traditionally highlights the role of higher savings in fostering economic growth and decreasing economic inequalities, this study incorporates Pasinettis 1962 perspective, which argues that increased savings among lower-income groups may disproportionately benefit wealthier groups, potentially intensifying inequality. Using Gillmans 2011 general equilibrium model, the paper bridges these theoretical insights to examine how class-based economic differences shape the outcomes of savings behavior. Empirical results derived from the theoretical model show that the impact of savings rates on global consumption patterns varies significantly depending on the economic structures of different countries. This analysis underscores the importance of designing economic policies sensitive to each countrys unique characteristics and structural realities rather than applying uniform, one-size-fits-all solutions.

 This paper examines global consumption inequality through empirical and theoretical approaches. To provide a clear perspective on the magnitude of consumption inequality globally, the study utilizes the Penn World Tables 10.01 dataset covering the period from 1960 to 2019. To do this, countries are grouped into five categories based on their consumption levels. The analysis based on the categorization reveals a significant rigidity in these groups, with lower-tier countries facing challenges in moving to higher consumption categories. In contrast, top-tier countries consistently retain their positions over decades. Moreover, the proportion of the global population residing in the lowest consumption group has remained remarkably high in the past six decades, further emphasizing global inequalitys entrenched and severe nature. The paper broadens the theoretical framework by extending Solows 1956 perspective on how savings rates influence economic disparities among countries. While the Solow-Swan model traditionally highlights the role of higher savings in fostering economic growth and decreasing economic inequalities, this study incorporates Pasinettis 1962 perspective, which argues that increased savings among lower-income groups may disproportionately benefit wealthier groups, potentially intensifying inequality. Using Gillmans 2011 general equilibrium model, the paper bridges these theoretical insights to examine how class-based economic differences shape the outcomes of savings behavior. Empirical results derived from the theoretical model show that the impact of savings rates on global consumption patterns varies significantly depending on the economic structures of different countries. This analysis underscores the importance of designing economic policies sensitive to each countrys unique characteristics and structural realities rather than applying uniform, one-size-fits-all solutions.

Makale detayları

DUAL DYNAMICS OF SAVINGS IN GLOBAL CONSUMPTION DISPARITIES

Yazarlar:

Muhammet Fatih Elçin

Yayıncı:

Marmara University

Ana Başlıklar:

Applied Macroeconometrics | Macroeconomic Theory

Dergi:

Journal of Research in Economics Vol.9 Issue 1, pp.12-30

Belge Tipi:

Makale

Yayın Tarihi:

3/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001342234

pISSN:

2636-8307

Consumption-Saving

Solow Growth Model

Demand-led Growth Models

Dynamic Panel Data Models.

Sayı

Makale detayları

DUAL DYNAMICS OF SAVINGS IN GLOBAL CONSUMPTION DISPARITIES

Yazarlar: Muhammet Fatih Elçin

Yayıncı: Marmara University

Ana Başlıklar: Applied Macroeconometrics | Macroeconomic Theory

Dergi: Journal of Research in Economics Vol.9 Issue 1, pp.12-30

Belge Tipi: Makale

Yayın Tarihi: 3/2025

Belge Dili: İngilizce

Document ID (Org No.): 2001342234

pISSN: 2636-8307

Consumption-Saving

Solow Growth Model

Demand-led Growth Models

Dynamic Panel Data Models.

Sayı

Yazarlar:

Muhammet Fatih Elçin

Yayıncı:

Marmara University

Ana Başlıklar:

Applied Macroeconometrics | Macroeconomic Theory

Dergi:

Journal of Research in Economics Vol.9 Issue 1, pp.12-30

Belge Tipi:

Makale

Yayın Tarihi:

3/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001342234

pISSN:

2636-8307