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Cyclical behaviour of consumption of non-durable goods: Spain versus U.S.A

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  • Lores, Francisco Xavier

Abstract

This paper studies the excessive volatility of Spanish aggregate non-durables consumption with relation to aggregate income. In this paper we stress the importance of non-durables imports over the variability of total non-durables consumption and we propose a theoretical model that formalizes the relation between domestic and imported consumption. The main finding of the paper is that a model of intertemporal optimization where there is no credit constrain or government can produce so high volatilities of consumption as the ones observed.

Suggested Citation

  • Lores, Francisco Xavier, 2001. "Cyclical behaviour of consumption of non-durable goods: Spain versus U.S.A," UC3M Working papers. Economics we014710, Universidad Carlos III de Madrid. Departamento de Economía.
  • Handle: RePEc:cte:werepe:we014710
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    5. Juan J. Dolado & Miguel Sebastián & Javier Vallés, 1993. "Ciclical patterns of the spanish economy," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 445-473, September.
    6. Luis A. Puch & Omar Licandro, 1997. "Are there any special features in the Spanish business cycle?," Investigaciones Economicas, Fundación SEPI, vol. 21(2), pages 361-394, May.
    7. Lores, Francisco Xavier, 2001. "Growth and cyclical fluctuations in Spanish macroeconomic series," UC3M Working papers. Economics we014609, Universidad Carlos III de Madrid. Departamento de Economía.
    8. Ellen R. McGrattan, 1998. "A defense of AK growth models," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall, pages 13-27.
    9. Fatas, Antonio, 2000. "Endogenous growth and stochastic trends," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 107-128, February.
    10. Espasa, Antoni & Martínez, José Manuel, 1998. "Modelling nonlinearities in GDP. Some diferences between us and spanish data," DES - Working Papers. Statistics and Econometrics. WS 6259, Universidad Carlos III de Madrid. Departamento de Estadística.
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