Dynamics and asymmetries between consumer sentiment and consumption in pre- and during-COVID-19 time: Evidence from the US

Salah Abosedra, Nikiforos T. Laopodis and Ali Fakih

The Journal of Economic Asymmetries, 2021, vol. 24, issue C

Abstract: We study the dynamic relationships between consumer expenditures and consumer sentiment in the pre- and during the COVID-19 periods. Our results indicate that sentiment is closely related to consumption as consumers seem to maintain a long memory of the impact of sentiment during the period of the pandemic relative to the pre-pandemic period. We also found asymmetric behavior of consumption growth with and without the influence of sentiment during each sub-period. We offer some specific policy implications that are beneficial to the US economy and other countries.

Keywords: Consumer spending; COVID-19; Consumer sentiment; VAR; Volatility; Asymmetry (search for similar items in EconPapers)
JEL-codes: D12 E27 F69 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joecas:v:24:y:2021:i:c:s1703494921000323

DOI: 10.1016/j.jeca.2021.e00227

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