Consumption and the Great Recession / Mariacristina De Nardi, Eric French, David Benson.

Format:

Book

Author/Creator:

De Nardi, Mariacristina.

Contributor:

National Bureau of Economic Research.

French, Eric.

Benson, David.

Series:

Working Paper Series (National Bureau of Economic Research) no. w17688.

NBER working paper series no. w17688

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2011.

Summary:

We document some key facts about aggregate consumption and its subcomponents over time. We then document the behavior of some important determinants of consumption, such as consumers' expectations about their future income, and changes in the consumers' wealth positions. Finally, we use a simple permanent income model to show that the observed drop in consumption during the Great Recession can be explained by the observed drops in wealth and income expectations.

Notes:

Print version record

December 2011.