 Inflation expectations and household expenditure: Evidence from pseudo-panel data in JapanTakeshi Niizeki and Masahiro Hori Journal of Economic Behavior & Organization, 2023, vol. 214, issue C, 308-324 Abstract: This paper examines to what extent a rise in inflation expectations stimulates current household expenditure in Japan. Using matched household datasets, we find the following. First, to the extent that the rise in inflation expectations is from about 0% to the 2−10% range, durable goods expenditure is significantly stimulated. Second, total expenditure increases by 1.0% in response to a one percentage point rise in inflation expectations, about 82% of which is explained by the response of durable goods expenditure. Third, storable and non-storable non-durable goods expenditures (especially the latter) do not respond significantly to the inflation expectations. Finally, a temporary rise in inflation expectations immediately stimulates total expenditure, but produces a similar degree of decline over a few quarters, with virtually no long-run impact. Keywords: Inflation expectations; Household expenditure; Unconventional policies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:214:y:2023:i:c:p:308-324 DOI: 10.1016/j.jebo.2023.08.008 Access Statistics for this article Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D. More articles in Journal of Economic Behavior & Organization from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.