EconPapers    
Economics at your fingertips  
 

Growth in US Durables Spending: Assessing the Impact of Consumer Ability and Willingness to Buy

Hamid Baghestani () and Sehar Fatima
Additional contact information
Hamid Baghestani: American University of Sharjah
Sehar Fatima: American University of Sharjah

Journal of Business Cycle Research, 2021, vol. 17, issue 1, No 3, 55-69

Abstract: Abstract This study makes use of two sets of variables in order to explain the behavior of growth in US consumer durables spending. The first set includes income and wealth growth as the determinants of consumer “ability to buy” in addition to changes in real interest rates. The second set includes detailed consumer durables-buying attitudes as the determinants of consumer “willingness to buy.” Our estimation results for 1988–2019 reveal that income and wealth growth in addition to changes in real interest rates significantly explain durables spending growth. Attitudinal factors that significantly explain durables spending growth include the difference of opinion of consumers as to whether prices are low or high, whether interest rates are low or high in addition to the difference of opinion of consumers regarding prosperous times versus uncertain future. Such evidence highlights the importance of detailed consumer durables-buying attitudes and offers insightful policy implications for stabilizing growth in durables spending.

Keywords: Consumption; Durables; Attitudinal data; Surveys of consumers; Monetary policy (search for similar items in EconPapers)
JEL-codes: E21 E52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41549-021-00053-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jbuscr:v:17:y:2021:i:1:d:10.1007_s41549-021-00053-7

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/41549

DOI: 10.1007/s41549-021-00053-7

Access Statistics for this article

Journal of Business Cycle Research is currently edited by Michael Graff

More articles in Journal of Business Cycle Research from Springer, Centre for International Research on Economic Tendency Surveys (CIRET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-06-26
Handle: RePEc:spr:jbuscr:v:17:y:2021:i:1:d:10.1007_s41549-021-00053-7