Durable goods and the forward-looking theory of consumption: Estimates implied by the dynamic effects of money

Lastrapes, William D.; Potts, Todd

doi:10.1016/j.jedc.2005.05.007

Cited by 8 publications

(2 citation statements)

References 44 publications

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“…The "early" papers from the 1960s and 1970s (Wu (1965), Hamburger (1967), Juster and Wachtel (1974), among others) provide the first models of demand for household durable goods, with a focus on durable good expenditures. While my paper contributes to the understanding of the microeconomic aspect of the demand for durable goods, another set of related studies consists of papers that derive macroeconomic models with durable goods (Ogaki and Reinhart (1998), Lastrapes and Potts (2006), Monacelli (2009), among others). Other papers look at the dynamics of consumer demand for narrow categories of durable goods.…”

Section: Related Literaturementioning

confidence: 99%

Effect of ageing on the ownership of durable goods

Bíró

2017

Scottish J Political Eco

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I analyse how ageing affects the demand for non‐housing durable goods. Based on the English Longitudinal Study of Ageing, individual characteristics, cohort and time effects can explain most of the age variation in the ownership and purchase of durable goods. A life‐cycle model is derived to capture the complex relation between ageing and the demand for non‐housing durable goods. Decreasing survival probability, deteriorating health and changing preferences are jointly reflected in the age gradient of demand. Simulations indicate that higher chances of survival increase the ownership ratio of the durable items.

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Section: Related Literaturementioning

confidence: 99%

Effect of ageing on the ownership of durable goods

Bíró

2017

Scottish J Political Eco

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“…Because housing sector has a crucial effect on the general state of the economy, it is highly likely to be affected by macroeconomic variables that affect the economy in general. Many studies investigating the relation between money supply and housing prices are present in the related literature (Lastrapes, 2002; Jin and Zeng, 2004; Aoki et al , 2004; William and Todd, 2006; Negro and Otrok, 2007; Goodhart and Hofmann, 2008; Gupta et al , 2009; Bjørnland and Jacobsen, 2010; Xu and Chen, 2012; Wen, 2013; Zhang, 2013; Lin, 2014; Pillaiyan, 2015; Zhang and Ran, 2016; Su et al , 2018; Su et al , 2019; Wang et al , 2020). A significant portion of these studies reveal that money supply affects housing prices through the credit channel.…”

Section: Introductionmentioning

confidence: 99%

The asymmetric effects of real variables on real housing prices: a nonlinear ARDL analysis for Turkey

Akpolat

2022

IJHMA

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Purpose This study aims to examine the impact of some real variables such as real effective exchange rates, real mortgage rates, real money supply, real construction cost index and housing sales on the real housing prices. Design/methodology/approach This study uses a nonlinear autoregressive distributed lag (NARDL) model in the monthly period of 2010:1–2021:10. Findings The real effective exchange rate has a positive and symmetric effect. The decreasing effect of negative changes in real money supply on real housing prices is higher than the increasing effect of positive changes. Only positive changes in the real construction cost index have an increasing and statistically significant effect on real house prices, while only negative changes in housing sales have a small negative sign and a small increasing effect on housing prices. The fact that the positive and negative changes in real mortgage rates are negative and positive, respectively, indicates that both have a reducing effect on real housing prices. Originality/value This study suggests the first NARDL model that investigates the asymmetric effects on real housing prices instead of nominal housing prices for Turkey. In addition, the study is the first, to the best of the authors’ knowledge, to examine the effects of the five real variables on real housing prices.

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