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Towards understanding what and when households spent

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Household spending is typically the largest component of economy activity. This article sets ot some ways of thinking about what shapes household consumption decisions and looks at New Zealand’s experience over the last decade or so – a period marked by rapid growth in asset prices and debt, and by big swings in economic performance. Large unexpected, but sustained, shifts in incomes appear to have been the biggest influence on total household consumption. Fiscal policy also appears to have played a role. It is less clear that the large increases in asset prices played a substantial role in influencing total household spending.

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File URL: http://www.rbnz.govt.nz/research_and_publications/reserve_bank_bulletin/2011/2007_2011/2011dec74__4deveirmanReddell.pdf
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Article provided by Reserve Bank of New Zealand in its journal Reserve Bank of New Zealand Bulletin.

Volume (Year): 74 (2011)
Issue (Month): (December)
Pages: 1-11

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Handle: RePEc:nzb:nzbbul:dec2011:4

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Cited by:
  1. Graham Howard & Özer Karagedikli, 2012. "House price expectations of households: A preliminary analysis of new survey data," Reserve Bank of New Zealand Analytical Notes series AN2012/01, Reserve Bank of New Zealand.
  2. Willy Chetwin, 2012. "Business cycle review, 1998-2011," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 75, pages 14-27, March.

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