This study sheds new light on the question of whether or not sentiment surveys, and the expectations derived from them, are relevant to forecasting economic growth and stock returns, and whether they contain information that is orthogonal to macroeconomic and financial data. I examine 16...

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...

Appendix to the main text

The traditional consumption function based on the life cycle permanent income hypothesis (LC-PIH) considers that consumer spending is based on households’ expectations of their future income. However, in short-term forecasting, the traditional economic determinants of consumption do not...

This is a short survey on consumption theory. Consumption is important to both fluctuation and growth. In addition, consumption introduces some important issues involving financial markets and portfolio decisions. We will describe consumption decisions in a dynamic context. Uncertainty about...

The average age of vehicles in the US has increased by more than 40 percent since the early 1960s. Over the same time period, consumer incomes on average have been growing faster than prices of new vehicles. This paper asks whether greater affordability of vehicles and the resulting increase in...

This paper discusses the links between earnings, consumption and economic welfare inequality. It places emphasis on the role of leisure and labor supply in the assessment of cross-household inequality and argues that the documented increase of such inequality has its origin in the labor market....

This paper provides a simple development mechanism for African nations, where economic development is low due to not only low level of physical capital but also poor social capital that leads to lot of conflicts. The study suggests for development of social capital, which is a broader concept...

This paper attempts a broad appraisal of the literature on macro consumption function in Islamic economics. It starts with a brief look at the microelements of the concept and clears several cobwebs concerning wants and needs, scarcity of resources, the basket of goods, and the efficacy of...

The purpose of this study was to substantiate the consumption styles of adolescents as customer. The study was executed in Karachi, Pakistan by applying consumption style inventory scale. The data covered of 1,048 respondents who are young and educated mostly students, which belong to the...