Federal Reserve Bank of Dallas
Globalization Institute Working Papers
The asymmetric effects of deflation on consumption spending: evidence from the Great Depression
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.
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.
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.
- E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
This item with handle RePEc:fip:feddgw:226
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