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Buying Less, But Shopping More: Changes In Consumption Patterns During A Crisis

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Author Info
David McKenzie
Ernesto Schargrodsky

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Abstract

Market research data are utilized to examine the use of changes in shopping behavior as a method of mitigating the effects of the 2002 Argentine economic crisis. Although the total quantity and real value of goods purchased fell during the crisis, consumers are found to be spending more days shopping. This increase in shopping frequency occurs through consumers purchasing lower-quality goods from a wider variety of shopping channels. This paper provides the first estimates of the magnitude of such effects during a recession, and suggests that this increase in shopping frequency can be an important coping mechanism for households. Shopping more often is shown to enable households to seek out lower prices and locate substitutes, allowing a given level of expenditure to buy more goods.

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File URL: http://www.utdt.edu/departamentos/empresarial/cif/pdfs-wp/wpcif-012005.pdf
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Paper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number buyinglessshop.

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Length: 51 pages
Date of creation: 2005
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Handle: RePEc:udt:wpbsdt:buyinglessshop

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  6. Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2003. "Economic Shocks, Wealth, and Welfare," Journal of Human Resources, University of Wisconsin Press, vol. 38(2). [Downloadable!] (restricted)
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  7. McKenzie, David J, 2006. "The Consumer Response to the Mexican Peso Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 139-72, October.
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  9. Guillermo A. Calvo & Alejandro Izquierdo & Ernesto Talvi, 2003. "Sudden Stops, the Real Exchange Rate, and Fiscal Sustainability: Argentina's Lessons," NBER Working Papers 9828, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Peter J. Klenow, 2003. "Measuring consumption growth: the impact of new and better products," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win, pages 10-23. [Downloadable!]
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  20. De la Torre, Augusto & Levy Yeyati, Eduardo & Schmukler, Sergio L., 2003. "Living and dying with hard pegs : the rise and fall of Argentina's currency board," Policy Research Working Paper Series 2980, The World Bank. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Geoorge Alessandria & Joseph Kaboski, 2004. "Violating purchasing power parity," Working Papers 04-19, Federal Reserve Bank of Philadelphia. [Downloadable!]
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  2. George Alessandria, 2005. "Consumer search, price dispersion, and international relative price volatility," Working Papers 05-9, Federal Reserve Bank of Philadelphia. [Downloadable!]
  3. George Alessandria & Joseph Kaboski, 2007. "Pricing-to-market and the failure of absolute PPP," Working Papers 07-29, Federal Reserve Bank of Philadelphia. [Downloadable!]
  4. Mark Aguiar & Erik Hurst, 2005. "Lifestyle prices and production," Public Policy Discussion Paper 05-3, Federal Reserve Bank of Boston. [Downloadable!]
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