Year: 2011
Type: report
Abstract: We document some key facts about aggregate consumption and its subcomponents over time.We then document the behavior of some important determinants of consumption, such as consumers' expectations about their future income, and changes in the consumers' wealth positions.Finally, we use a simple permanent income model to show that the observed drop in consumption during the Great Recession can be explained by the observed drops in wealth and income expectations.
DOI: 10.3386/w17688
Authors: Mariacristina De Nardi, Eric French, David Benson
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2143167757