Business cycle fluctuations and excess sensitivity of private consumption
We investigate whether business cycle fluctuations affect the degree of excess sensitivity of private consumption growth to disposable income growth. Using multivariate state space methods and quarterly US data for the period 1965-2000 we find that excess sensitivity is significantly higher during recessions.
Year of publication: |
2007-11
|
---|---|
Authors: | Peersman, Gert ; Pozzi, Lorenzo |
Institutions: | Bank of England |
Saved in:
freely available
Saved in favorites
Similar items by person
-
What caused the early millennium slowdown? Evidence based on vector autoregressions
Peersman, Gert, (2005)
-
Accounting for the source of exchange rate movements: new evidence
Farrant, Katie, (2005)
-
Business cycle fluctuations and excess sensitivity of private consumption
Peersman, Gert, (2008)
- More ...