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The Determination of Expenditure On Consumer Durables

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  • Cuthbertson, Keith

Abstract

This article presents some alternative models of consumers' expenditure on durable goods and examines some general issues of econometric model building. In the preferred model, income, the change in liquid assets and the real cost of credit have a substantial effect on durables expenditure. Hence, both fiscal policy instruments such as a change in the rate of income tax and monetary variables such as nominal interest rates and sterling M3 influence durables expenditure.

Suggested Citation

  • Cuthbertson, Keith, 1980. "The Determination of Expenditure On Consumer Durables," National Institute Economic Review, National Institute of Economic and Social Research, vol. 94, pages 62-72, November.
    • Handle: RePEc:cup:nierev:v:94:y:1980:i::p:62-72_7
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    Cited by:

    1. Matthew O'Donnell & Aleksandar Vasilev, 2024. "How do interest rates effect consumption in the UK?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 67(3), pages 1-41.

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