Adjustment of Consumers'durables Stocks: Evidence from Automobile Purchases
AbstractDisturbances to aggregate expenditure on consumer durables are much more persistent than predicted by an optimizing representative consumer model. Recent work in macroeconomics has explored this "slowness to adjust" in the context of consumers facing transactions costs when purchasing durable goods. This approach produces infrequent household purchases and requires explicit attention to aggregation of households. This paper considers household behavior directly, using panel data on automobile purchases and finds that about half of the households purchase automobiles subject only to transactions costs. Explicit aggregation shows that the cross-section distribution of households according to their durables stocks is quite similar to that theoretically predicted. Simulated aggregate expenditures using observed household slowness to adjust show persistence of aggregate shocks and response to income growth consistent with the aggregate data.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Wharton School - Weiss Center for International Financial Research in its series Weiss Center Working Papers with number 22-91.
Length: 44 pages
Date of creation: 1990
Date of revision:
Contact details of provider:
Postal: 3404 Steinberg Hall-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104-6367
Web page: http://finance.wharton.upenn.edu/weiss/
More information through EDIRC
macroeconomics ; costs ; household ; business cycles;
Other versions of this item:
- Eberly, Janice C, 1994. "Adjustment of Consumers' Durables Stocks: Evidence from Automobile Purchases," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 403-36, June.
- Janice C. Eberly, . "Adjustment of Consumers' Durables Stocks: Evidence from Automobile Purchases," Rodney L. White Center for Financial Research Working Papers 22-91, Wharton School Rodney L. White Center for Financial Research.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.