Computerizing households and the role of technology shocks in consumer durables

Seunghoon Na and Hyunseung Oh

Journal of Macroeconomics, 2025, vol. 83, issue C

Abstract: We quantitatively assess the cyclical importance of technology shocks to consumer durables in light of the widespread adoption of consumer electronics such as smartphones and tablets. By estimating a business-cycle model of consumer durables with IT-specific technology, we find that technology shocks accounted for more than half of the variation in consumer IT goods and were a key driver of the 2001–2007 boom in consumer durable expenditures. Our estimation results suggest a larger role for technology shocks in household expenditures on consumer durables than previously recognized. In standard models, however, these shocks have a more limited impact on GDP dynamics, as consumer durables do not contribute to productive capital.

Keywords: Investment; Durables; Investment-specific technology (search for similar items in EconPapers)
JEL-codes: E22 E32 E37 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:83:y:2025:i:c:s0164070424000764

DOI: 10.1016/j.jmacro.2024.103662

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