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Persistence in US real personal consumption expenditure: durable versus non-durable goods

Author

Listed:
  • Guglielmo Maria Caporale

    (Brunel University of London)

  • Luis Alberiko Gil-Alana

    (University of Navarra, Pamplona, Spain and Universidad Francisco de Vitoria, Madrid, Spain)

  • Sakiru Solarin

    (Multimedia University Malaysia, Melaka, Malaysia)

Abstract

This note examines persistence in US real personal consumption expenditure, distinguishing between durable and non-durable goods. For this purpose, fractional integration methods are applied to analyse data over the period from 1965q3 to 2024q4. The results suggest that seasonality is not an important feature of the two series. Further, while durables are characterised by short memory, non-durables exhibit long memory with a statistically significant and positive fractional integration parameter. This indicates that the effects of shocks last longer in the case of non-durables compared to durables.

Suggested Citation

  • Guglielmo Maria Caporale & Luis Alberiko Gil-Alana & Sakiru Solarin, 2025. "Persistence in US real personal consumption expenditure: durable versus non-durable goods," Economics Bulletin, AccessEcon, vol. 45(2), pages 1100-1106.
    • Handle: RePEc:ebl:ecbull:eb-25-00288
    as

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    References listed on IDEAS

    as
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    3. Guglielmo Maria Caporale & Luis Alberiko Gil-Alana, 2023. "Gold and silver as safe havens: A fractional integration and cointegration analysis," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-9, March.
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    5. Heinz-Herbert Noll & Stefan Weick, 2015. "Consumption expenditures and subjective well-being: empirical evidence from Germany," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(2), pages 101-119, June.
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    7. Dayong Dong & Giray Gozgor & Zhou Lu & Cheng Yan, 2021. "Personal consumption in the United States during the COVID-19 crisis," Applied Economics, Taylor & Francis Journals, vol. 53(11), pages 1311-1316, March.
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    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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