Consumer confidence and rational expectations in the United States compared with the United Kingdom
This paper examines the relationship between consumer confidence and the Rational Expectations Permanent Income Hypothesis in the USA and compares the results with those obtained for the UK. The study expands previous analysis by defining consumption as motor vehicles, goods excluding motor vehicles, and services. The results suggest that predictive ability of the USA's consumer confidence is less than that of the UK, but that contrary to the UK study, confidence does not predict future consumption growth of services and is therefore consistent with Rational Expectations Permanent Income Hypothesis.
Volume (Year): 33 (2001)
Issue (Month): 7 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:33:y:2001:i:7:p:863-869. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.