Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Dallas
Globalization Institute Working Papers
The asymmetric effects of deflation on consumption spending: evidence from the Great Depression
J. Scott Davis
Abstract

Does expected deflation lead to a fall in consumption spending? Using data for U.S. grocery store sales and department store sales from 1919 to 1939, this paper shows that expected price changes have asymmetric effects on consumption spending. Department store sales (durable consumption) react negatively to the expectation of falling prices, but grocery store sales (non-durable consumption) do not react to expected price changes.


Download Full text
Cite this item
J. Scott Davis, The asymmetric effects of deflation on consumption spending: evidence from the Great Depression, Federal Reserve Bank of Dallas, Globalization Institute Working Papers 226, 01 Feb 2015.
More from this series
Note: Published as: Davis, J. Scott (2015), "The Asymmetric Effects of Deflation On Consumption Spending: Evidence from the Great Depression," Economic Letters 130: 105-108.
JEL Classification:
Subject headings:
DOI: 10.24149/gwp226
For corrections, contact Amy Chapman ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal