The asymmetric effects of deflation on consumption spending: Evidence from the great depression

Jonathan Davis

Economics Letters, 2015, vol. 130, issue C, 105-108

Abstract: Using data for U.S. grocery and department store sales from 1919–1939, this paper shows that expected price changes have asymmetric effects on consumption spending. Department store sales (durable consumption) react negatively to expected deflation, but grocery sales (non-durable consumption) do not.

Keywords: Deflation; Consumption; Durable goods; Non-durable goods (search for similar items in EconPapers)
JEL-codes: E20 N10 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Working Paper: The asymmetric effects of deflation on consumption spending: evidence from the Great Depression (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:130:y:2015:i:c:p:105-108

DOI: 10.1016/j.econlet.2015.03.016

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