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The Effect of Unconventional Fiscal Policy on Consumption Expenditure
D'Acunto, Francesco - 2016
Unconventional fiscal policy uses announcements of future increases in consumption taxes to generate inflation expectations and accelerate consumption expenditure. It is budget neutral and time consistent. We exploit a unique natural experiment for an empirical test of the effectiveness of...
Persistent link: https://www.econbiz.de/10012984119
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Non-Durable Consumption and Housing Net Worth in the Great Recession : Evidence from Easily Accessible Data
Kaplan, Greg - 2016
housing net worth on household expenditures during the Great Recession. Their widely-cited estimates are based on proprietary … specification on our data, we obtain values for the elasticity of expenditures to the housing net worth shock that are virtually … conclusions about the separate roles of house prices and initial housing exposure/leverage for the drop in expenditures. Moreover …
Persistent link: https://www.econbiz.de/10012992649
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The Permanent Income Hypothesis and Consumption Durability : Analysis Based on Japanese Panel Data
Hayashi, Fumio - 2021
commodity groups. Consumption is a distributed lag function of expenditures, and the utility function is additively separable in … each commodity group, expected change in expenditures is correlated neither with past expenditure changes on other …
Persistent link: https://www.econbiz.de/10013218128
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International Trade in Durable Goods : Understanding Volatility, Cyclicality, and Elasticities
Engel, Charles M. - 2008
Data for OECD countries document: 1. imports and exports are about three times as volatile as GDP; 2. imports and exports are pro-cyclical, and positively correlated with each other; 3. net exports are counter-cyclical. Standard models fail to replicate the behavior of imports and exports,...
Persistent link: https://www.econbiz.de/10012772731
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The Dynamics of Car Sales : A Discrete Choice Approach
Adda, Jerome - 2006
Mankiw [1982] explores the Permanent Income Hypothesis implication that durable expenditures follow an ARMA(1 …,1) representation. He finds that durable expenditures are represented by an AR(1) process which implies that the rate of depreciation of …
Persistent link: https://www.econbiz.de/10012783955
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Durability of Output and Expected Stock Returns
Gomes, Joao F. - 2010
The demand for durable goods is more cyclical than that for nondurable goods and services. Consequently, the cash flows and stock returns of durable-good producers are exposed to higher systematic risk. Using the benchmark input-output accounts of the National Income and Product Accounts, we...
Persistent link: https://www.econbiz.de/10012760299
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Mortgage Rates, Household Balance Sheets, and the Real Economy
Keys, Benjamin J. - 2014
This paper investigates the impact of lower mortgage rates on household balance sheets and other economic outcomes during the housing crisis. We use proprietary loan-level panel data matched to consumer credit records using borrowers' Social Security numbers, which allows for accurate...
Persistent link: https://www.econbiz.de/10013046153
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Durable Goods Cycles
Caplin, Andrew; Leahy, John V. - 2021
We show that a straight forward approximation of the distribution of durable goods holdings gives rise to a tractable equilibrium (S,s) model of durable demand. We analyze both competitive and monopoly supply. We show that equilibrium interactions lead to elongated impulse responses in demand,...
Persistent link: https://www.econbiz.de/10013248682
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Increasing Returns, Durables and Economic Fluctuations
Murphy, Kevin M.; Shleifer, Andrei; Vishny, Robert W. - 2021
We describe an economy where a durable good is produced with an increasing returns to scale technology. Equilibria in this economy take the form of business cycles in which consumption fluctuates too much and is too low on average. A 2-sector version of this economy with imperfect credit and...
Persistent link: https://www.econbiz.de/10013211664
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Cyclical Pricing of Durable Goods
Bils, Mark - 2021
I examine price markups in monopolisticly-competitive markets that experience fluctuations in demand because the economy experiences cyclical fluctuations in productivity. Markups depend positively on the average income of purchasers in the market. For a nondurable good average income of...
Persistent link: https://www.econbiz.de/10013230197