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Durable Goods and the Business Cycle

Author

Listed:
  • Susan Black

    (Reserve Bank of Australia)

  • Tom Cusbert

    (Reserve Bank of Australia)

Abstract

Spending on durable goods tends to be more cyclical than spending on non-durable goods and services as it can be more readily postponed in times of economic weakness. During the recent global economic slowdown, the decline in durable goods spending was a key transmission mechanism of the uncertainty associated with the global financial crisis to the broader economy, as households and businesses delayed purchases of durable goods.

Suggested Citation

  • Susan Black & Tom Cusbert, 2010. "Durable Goods and the Business Cycle," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 11-18, September.
    • Handle: RePEc:rba:rbabul:sep2010-02
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2010/sep/pdf/bu-0910-2.pdf
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    References listed on IDEAS

    as
    1. Jose Luengo-Prado, Maria, 2006. "Durables, nondurables, down payments and consumption excesses," Journal of Monetary Economics, Elsevier, vol. 53(7), pages 1509-1539, October.
    2. Fisher, Lance A & Otto, Glenn & Voss, Graham M, 1996. "Australian Business Cycle Facts," Australian Economic Papers, Wiley Blackwell, vol. 35(67), pages 300-320, December.
    3. Stock, James H. & Watson, Mark W., 1999. "Business cycle fluctuations in us macroeconomic time series," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 1, pages 3-64, Elsevier.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Tony McDonald & Steven Morling, 2011. "The Australian economy and the global downturn, Part 1: Reasons for resilience," Economic Roundup, The Treasury, Australian Government, issue 2, pages 1-31, September.
    3. Kostas Mavromaras & Neha Deo & Heath Spong & Maria Estela Varua, 2017. "The Impact of the GFC on Sectoral Market Efficiency: Non-linear Testing for the Case of Australia," The Economic Record, The Economic Society of Australia, vol. 93, pages 38-56, June.
    4. Hamid Baghestani & Sehar Fatima, 2021. "Growth in US Durables Spending: Assessing the Impact of Consumer Ability and Willingness to Buy," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 17(1), pages 55-69, April.
    5. Amagoia Sagasta & José M. Usategui, 2015. "Purchase and rental subsidies in durable-oligopolies," Hacienda Pública Española / Review of Public Economics, IEF, vol. 213(2), pages 11-40, June.
    6. Peter, Manuel, 2016. "Der Einfluss der Entschuldung auf die Aktienmärkte: Eine Analyse des Einflusses und der Herausforderungen für Investoren," Arbeitspapiere 171, University of Münster, Institute for Cooperatives.
    7. Mary Loxton & Robert Truskett & Brigitte Scarf & Laura Sindone & George Baldry & Yinong Zhao, 2020. "Consumer Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the Role of the Media in Influencing," JRFM, MDPI, vol. 13(8), pages 1-21, July.
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    9. Berrak Bahadir & Neven Valev, 2020. "Institutions, Household Credit Composition, And The Business Cycle," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1401-1413, July.

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