The consumption response to positive and negative income shocks
| Autor: | Jeanne Le Roux, Kate Reinold, Paolo Surico, Philip Bunn |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
ELCE
Consumption (economics) ELCF Economics and Econometrics Labour economics media_common.quotation_subject 05 social sciences 1. No poverty Balance sheets Monetary economics Debts Subjective risk Market liquidity Permanent income hypothesis Debt 0502 economics and business 8. Economic growth Economics Bond market Balance sheet 050207 economics Marginal propensity to consume Finance 050205 econometrics media_common |
| Zdroj: | Journal of Monetary Economics |
| ISSN: | 0304-3932 |
| DOI: | 10.1016/j.jmoneco.2017.11.007 |
| Popis: | A set of newly-added questions in the 2011–2014 Bank of England/NMG Consulting Survey reveals that British households tend to change their consumption by significantly more in reaction to temporary and unanticipated falls in income than to rises of the same size. Household balance sheet characteristics such as high debt-to-income ratios and small liquidity buffers, concerns about credit market access and higher subjective risk of lower future income account for a sizable share of this spending asymmetry. Our findings have important implications for predicting the response of aggregate consumption to expansionary and contractionary macroeconomic policies. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect