UNDERSTANDING THE COSTS OF CONSUMER DURABLE ADJUSTMENTS

• Published in: Economic Inquiry Vol. 54; no. 3; pp. 1561 - 1573
• Main Author: Suzuki, Michio
• Format: Journal Article
• Language: English
• Published: Boston, USA Wiley Periodicals, Inc 01.07.2016; Wiley; Wiley-Blackwell; Blackwell Publishers Ltd; Western Economic Association
• Subjects: Adjustments; Analysis; Consumer expenditure; Consumer spending; Consumption; Consumption (Economics); Durable goods; Economic models; Expenditures; Fixed costs; Nondurable goods; Studies; United States

This article examines whether adjustment frictions help account for the patterns of household consumption expenditures observed in the Consumer Expenditure Survey, namely, that the variance of log durable expenditure is four times larger than that of log nondurable expenditure for annual data and th...