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Is there a gender difference in accurately predicting the sign of growth in durables spending?

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  • Hamid Baghestani

Abstract

The answer is yes, according to the Michigan Surveys of Consumers (MSC) data. A survey question under the ‘Household durables buying conditions’ category asks: ‘About the big things people buy for their homes – such as furniture, a refrigerator, stove, television, and things like that. Generally speaking, do you think now is a good time or a bad time for people to buy major household items?’ Using the individual responses, the MSC calculates a balanced index representing consumer durable buying attitudes separately for all, female, and male participants in addition to those in the lower 33%, middle 33%, and upper 33% income categories. We show that only the change in female durable buying attitudes accurately predicts the sign of growth in durables spending.

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  • Hamid Baghestani, 2020. "Is there a gender difference in accurately predicting the sign of growth in durables spending?," Applied Economics Letters, Taylor & Francis Journals, vol. 27(5), pages 383-386, March.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:5:p:383-386
    DOI: 10.1080/13504851.2019.1616060
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