uu.seUppsala University Publications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Consumer confidence and consumption in Sweden
Uppsala University, Humanistisk-samhällsvetenskapliga vetenskapsområdet, Faculty of Social Sciences, Department of Economics.
Uppsala University, Humanistisk-samhällsvetenskapliga vetenskapsområdet, Faculty of Social Sciences, Department of Economics.
1996 (English)Report (Other academic)
Abstract [en]

The role of confidence indices in explaining consumption growth in Sweden during the period 1975-94 is analysed in this paper. We first analysed which variables influence the levels of the confidence indices. Two important such factors are found to be changes in real interest rates and changes in the inflation rate. Of the two forward-looking indices considered, the one regarding the personal financial situation is found to be more closely related to changes in consumption than the index regarding the general economic situation. The latter has no additional information content in the presence of the former. In a crude analysis the personal financial situation index explains about 37 % of the variance in the growth rate of consumption. The index has an important significant effect even in the presence of other vari-ables in the two types of consumption models that are considered, an Euler equation and a solved-out consumption model. In the latter model, the confidence index increases the ex-plained part of the variance in consumption growth from about 0.69 to 0.76. The real after-tax interest rate and the change in the inflation rate are important determinants of consumption. Financial wealth is more important than housing wealth and changes in debt also influence consumption. The solved-out consumption model is able to reflect the Swedish boom-to-bust cycle in consumption remarkably well.

Place, publisher, year, edition, pages
Uppsala: Nationalekonomiska institutionen , 1996. , 30 p.
Series
Working paper, ISSN 0284-2904
Keyword [en]
Economics
Keyword [sv]
Nationalekonomi
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-2361ISBN: 99-2269621-5 OAI: oai:DiVA.org:uu-2361DiVA: diva2:128622
Available from: 1996-01-01 Created: 1996-01-01

Open Access in DiVA

No full text

By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 458 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf