Does Consumer Confidence Forecast Household Spending? The Euro Area Case

The following analysis, based on error correction models, suggests that consumer confidence, together with traditional macroeconomic variables, contains a forecasting and explicative power on consumption. By including consumer confidence in a consumption function, consumer confidence releases a significant coefficient. Such a confidence-augmented consumption model provides good forecasting results.

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Year of publication:	2006-11-22
Authors:	Dion, David Pascal
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Consumer confidence \| consumption function \| forecasting \| consumer attitudes and behaviour \| households

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D12 - Consumer Economics: Empirical Analysis ; C53 - Forecasting and Other Model Applications ; E27 - Forecasting and Simulation ; E21 - Consumption; Saving ; D11 - Consumer Economics: Theory ; C52 - Model Evaluation and Testing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005616993