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Consumption and income expectations during Covid-19

Author

Listed:
  • Giovanni Immordino

    (University of Naples Federico II)

  • Tullio Jappelli

    (University of Naples Federico II)

  • Tommaso Oliviero

    (University of Naples Federico II)

Abstract

Using a survey of Italian households administered in November 2021, we study the effect of microeconomic and macroeconomic expectations about the health crisis and income growth on consumption expectations in 2022. The survey elicits individual-level indicators of income and consumption expectations, distinguishing between consumption at home, away from home, online and total. We find that expected household income and expected GDP growth are strongly related to consumption expectations; income risk is positively associated with expected consumption growth for richer households. Finally, our results indicate that health-related variables were not a major drivers of consumption expectations in 2022.

Suggested Citation

  • Giovanni Immordino & Tullio Jappelli & Tommaso Oliviero, 2024. "Consumption and income expectations during Covid-19," Review of Economics of the Household, Springer, vol. 22(1), pages 95-116, March.
    • Handle: RePEc:kap:reveho:v:22:y:2024:i:1:d:10.1007_s11150-023-09656-8
    DOI: 10.1007/s11150-023-09656-8
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    1. Charles F. Manski, 2018. "Survey Measurement of Probabilistic Macroeconomic Expectations: Progress and Promise," NBER Macroeconomics Annual, University of Chicago Press, vol. 32(1), pages 411-471.
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    More about this item

    Keywords

    Consumption Expectations; Income Expectations; Covid-19 Crisis;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving

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