On the Effect of the Great Recession on US Household Expenditures for Entertainment
Liping Gao (),
Hyeongwoo Kim () and
No auwp2013-09, Auburn Economics Working Paper Series from Department of Economics, Auburn University
This paper empirically investigates potential effects of economic recessions on consumers¡¯ decision making process for recreational activities using the Consumer Expenditure Survey (CES) data during the Great Recession. We employ the Probit model to study how changes in income affect the likelihood of making non-zero expenditures on entertainment activities. We also use the Tobit model to assess the income effect on those activities in the presence of censored observations. We found overall statistically significant effects of recessions on leisure activities, which may explain sluggish adjustments of leisure consumption during recessions.
Keywords: Entertainment; Consumer Expenditure Survey; Probit Model; Tobit Model (search for similar items in EconPapers)
JEL-codes: D12 J01 P46 (search for similar items in EconPapers)
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Working Paper: On the Effect of the Great Recession on US Household Expenditures for Entertainment (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:abn:wpaper:auwp2013-09
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