The Rise and Fall of Consumption in the 2000s
A Tangled Tale
Bibliographic Data
| ID | 9725702 |
|---|---|
| Authors | Yuliya Demyanyk (Federal Reserve Bank of Cleveland), Dmytro Hryshko (0000-0002-2977-980X, University of Alberta), María José Luengo‐Prado (Federal Reserve Bank of Boston), María Luengo-Prado (0000-0002-1994-2925, Federal Reserve Bank of Boston), Bent E Sørensen (0000-0002-2326-440X, University of Houston and CEPR) |
| Year | 2019 |
| Volume | 86 |
| Issue | 343 |
| Pages | 495-531 |
| Publication date | 2019-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12272 |
| OpenAlex | W2783855052 |
| Language | EN |
| References cited | 46 |
US consumption has gone through steep ups and downs since 2000. We quantify the statistical impact of income, unemployment, house prices, credit scores, debt, financial assets, expectations, foreclosures and inequality on county‐level consumption growth for four subperiods: the ‘dot‐com recession’ (2001–3), the ‘subprime boom’ (2004–6), the Great Recession (2007–9) and the ‘tepid recovery’ (2010–12). Consumption growth cannot be explained by a few factors; rather, it depends on a large number of variables whose explanatory power varies by subperiod. Growth of income, growth of housing wealth and fluctuations in unemployment are the most important determinants of consumption, significantly so in all subperiods, while fluctuations in financial assets and expectations are important during only some subperiods. Lagged variables, such as the share of subprime borrowers, are significant but less important
Boom · Consumption (sociology) · Debt · Economics · Explanatory power · Inequality · Macroeconomics · Monetary economics · Recession · Unemployment · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism
Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis
Fiscal Stimulus in a Monetary Union
Information, Animal Spirits, and the Meaning of Innovations in Consumer Confidence
How do house prices affect consumption? Evidence from micro data
Consumption Over the Life Cycle
Saving and Liquidity Constraints
The Buffer-Stock Theory of Saving
Household Balance Sheets, Consumption, and the Economic Slump
House Prices, Home Equity–Based Borrowing, and the US Household Leverage Crisis
The Consequences of Mortgage Credit Expansion
Debt, Deleveraging, and the Liquidity Trap
What Can Explain Excess Smoothness and Sensitivity of State-Level Consumption
Consumption and Credit
Job Loss, Credit Constraints, and Consumption Growth
Inequality, Leverage, and Crises
Stochastic Implications of the Life Cycle-Permanent Income Hypothesis
Relative Wage Movements and the Distribution of Consumption
A Simple Test of Consumption Insurance
Consumer Confidence and Consumer Spending
| Citation velocity | historical |
|---|---|
| Highly cited | No |