What Makes a Good Economy? An Analysis of Survey Data
AbstractThis study analyzes nearly twenty-five years of U.S. survey data to determine the macroeconomic conditions associated with economies the public considers “good.” These surveys are correlated with, but distinct from, other frequently-studied, expectations-oriented indices of consumer sentiment. The primary findings are as follows: 1) inflation and unemployment, the variables in the Phillips curve, explain much of the variation in the survey data; 2) consumers’ implied loss function is nearly linear in these two variables; 3) the public is willing to trade off four percentage points of (increased) inflation for one percentage point of (decreased) unemployment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Sam Houston State University, Department of Economics and International Business in its series Working Papers with number 0909.
Date of creation: Oct 2009
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael C. & Pao-Lin Tien, 2000. "Economic Discomfort and Consumer Sentiment," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 1-8, Winter.
- Sydney C. Ludvigson, 2004. "Consumer Confidence and Consumer Spending," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 29-50, Spring.
- Glenn D. Rudebusch & Lars E. O. Svensson, 1998.
"Policy rules for inflation targeting,"
Working Papers in Applied Economic Theory
98-03, Federal Reserve Bank of San Francisco.
- Glenn Rudebusch & Lars E.O. Svensson, 1999. "Policy Rules for Inflation Targeting," NBER Chapters, in: Monetary Policy Rules, pages 203-262 National Bureau of Economic Research, Inc.
- Glenn D. Rudebusch & Lars E. O. Svensson, 1998. "Policy rules for inflation targeting," Proceedings, Federal Reserve Bank of San Francisco, issue Mar.
- Rudebusch, G.D. & Svensson, L.E.O., 1998. "Policy Rules for Inflation Targeting," Papers 637, Stockholm - International Economic Studies.
- Rudebusch, Glenn D & Svensson, Lars E O, 1998. "Policy Rules for Inflation Targeting," CEPR Discussion Papers 1999, C.E.P.R. Discussion Papers.
- Svensson, Lars E.O. & Rudebusch , Glenn, 1998. "Policy Rules for Inflation Targeting," Seminar Papers 637, Stockholm University, Institute for International Economic Studies.
- Glenn D. Rudebusch & Lars E. O. Svensson, 1998. "Policy Rules for Inflation Targeting," NBER Working Papers 6512, National Bureau of Economic Research, Inc.
- Heinz Welsch, 2007. "Macroeconomics and life satisfaction: Revisiting the "misery index"," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 237-251, November.
- Boivin, Jean & Giannoni, Marc, 2006.
"Has Monetary Policy Become More Effective?,"
CEPR Discussion Papers
5463, C.E.P.R. Discussion Papers.
- Oswald, Andrew, 1997.
"Happiness and Economic Performance,"
The Warwick Economics Research Paper Series (TWERPS)
478, University of Warwick, Department of Economics.
- Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001.
"Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness,"
American Economic Review,
American Economic Association, vol. 91(1), pages 335-341, March.
- DiTella, Rafael & MacCulloch, Robert & Oswald, Andrew J., 2001. "Preferences over inflation and unemployment: Evidence from surveys of happiness," ZEI Working Papers B 03-2001, ZEI - Center for European Integration Studies, University of Bonn.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Troy Quast).
If references are entirely missing, you can add them using this form.