New Demand Economics
Fuente:
arXiv
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| Autori principali: | , , |
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| Natura: | Preprint |
| Pubblicazione: |
2025
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| Soggetti: | |
| Accesso online: | |
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| _version_ | 1866917027085549568 |
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| author | Wen, Fenghua Yin, Xieyu Wen, Chufu |
| author_facet | Wen, Fenghua Yin, Xieyu Wen, Chufu |
| contents | We develop a theory of demand economics for an era of material abundance. The binding constraint on growth has shifted from insufficient aggregate demand to inadequate demand-tier upgrading. Our result is that, the new engine of growth lies in upgrading the demand hierarchy: higher-tier demands generate larger value-creation multipliers. The key mechanism is education-driven utility management. Education transforms the social utility function, raises the utility of higher-tier goods, and directs resources toward higher-value domains; this warrants a policy reorientation away from short-run aggregate stimulus toward education-centered, long-horizon investments in human capital. Methodologically, we build an estimable general-equilibrium framework. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2510_17121 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | New Demand Economics Wen, Fenghua Yin, Xieyu Wen, Chufu General Economics Economics We develop a theory of demand economics for an era of material abundance. The binding constraint on growth has shifted from insufficient aggregate demand to inadequate demand-tier upgrading. Our result is that, the new engine of growth lies in upgrading the demand hierarchy: higher-tier demands generate larger value-creation multipliers. The key mechanism is education-driven utility management. Education transforms the social utility function, raises the utility of higher-tier goods, and directs resources toward higher-value domains; this warrants a policy reorientation away from short-run aggregate stimulus toward education-centered, long-horizon investments in human capital. Methodologically, we build an estimable general-equilibrium framework. |
| title | New Demand Economics |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2510.17121 |