Does Consumer Confidence Forecast Household Spending? The Euro Area Case

David Dion

MPRA Paper from University Library of Munich, Germany

Abstract: The following analysis, based on error correction models, suggests that consumer confidence, together with traditional macroeconomic variables, contains a forecasting and explicative power on consumption. By including consumer confidence in a consumption function, consumer confidence releases a significant coefficient. Such a confidence-augmented consumption model provides good forecasting results.

Keywords: Consumer confidence; consumption function; forecasting; consumer attitudes and behaviour; households (search for similar items in EconPapers)
JEL-codes: C52 C53 D11 D12 E21 E27 (search for similar items in EconPapers)
Date: 2006-11-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:911

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