Luxury, Innovation, and Crisis: The Teachings of Classical Economists

By Joël Thomas Ravix

The aim of this article is to demonstrate that the Classical economists’ analysis can serve as a theoretical framework to explain the economic role of luxury. In the 18th century this school of thought was based on the political implications of trade and luxury, conceived as a kind of social innovation explaining the wealth of nations. During the first half of the 19th century, the Classical economic approach was formed around the links between luxury, technical innovation, and economic crisis.
JEL Codes: B11, B12, O30


  • luxury
  • Classical economists
  • innovation
  • economic crisis
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