Jonathan Parker, Nicholas S Souleles, Aaron Goodman, 04 February 2018

The most accurate way to determine how people respond to an economic policy is to observe how they did in fact respond to that policy, but this approach is not always possible. This column uses a 2008 tax rebate in the US to compare the traditional revealed preference approach and a reported preference approach where people are simply asked how they would, or did, behave. The results suggest that reported spending data are valuable in predicting behaviour and in estimating population aggregates, but are not sufficiently accurate to provide reliable quantitative measurements of household-level spending responses.

Masayuki Morikawa, 21 October 2017

Studies predicting a substantial impact of the 2020 Tokyo Olympic games on the Japanese economy have tended to overlook substitution effects in spending as well as the characteristics of those who are expected to increase their spending. This column uses a survey of 10,000 consumers across Japan to examine the net impact on consumer spending. While the majority expect no significant change in their consumption expenditures, a greater share of respondents expect a net increase than a net decrease. In general, people in their 20s and 30s, high-income earners, those with higher educational attainment, and households with at least one pre-school child expect a net increase in consumption expenditures.

Paul Edelstein, Lutz Kilian, 06 June 2007

Detailed date energy prices and consumer spending in the US from 1970 to 2006 show exactly how oil price changes affect the economy. The declining size of the US auto sector helped to contain the effects of recent oil shocks on the wider economy.


CEPR Policy Research