Consumer confidence and rational expectations in the United States compared with the United Kingdom

Charles Delorme, David Kamerschen and Lisa Ford Voeks

Applied Economics, 2001, vol. 33, issue 7, 863-869

Abstract: This paper examines the relationship between consumer confidence and the Rational Expectations Permanent Income Hypothesis in the USA and compares the results with those obtained for the UK. The study expands previous analysis by defining consumption as motor vehicles, goods excluding motor vehicles, and services. The results suggest that predictive ability of the USA's consumer confidence is less than that of the UK, but that contrary to the UK study, confidence does not predict future consumption growth of services and is therefore consistent with Rational Expectations Permanent Income Hypothesis.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840122192 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:33:y:2001:i:7:p:863-869

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840122192

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().