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Luxury goods and services in recession periods. Time trends and persistence analysis

Author

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  • Berta Marcos Ceron

    (Universidad de Salamanca)

  • Manuel Monge

    (Universidad Francisco de Vitoria)

Abstract

The objective of this research paper is to understand and analyze the behavior of the prices of luxury goods and services in the two most important recessive periods that have occurred, which are the financial crisis of 2007 and COVID-19. This analysis was carried out for different purposes in the United States, Europe, China and in the world from January 2005 to July 2023. The results using fractional integration suggest that after the negative shocks caused by financial crisis and COVID-19, respectively, the time series return by themselves to their long-term projections. In the case of United States and Europe, the series will recover themselves faster than for the rest of the areas.

Suggested Citation

  • Berta Marcos Ceron & Manuel Monge, 2024. "Luxury goods and services in recession periods. Time trends and persistence analysis," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(6), pages 588-595, December.
    • Handle: RePEc:pal:jorapm:v:23:y:2024:i:6:d:10.1057_s41272-023-00469-z
    DOI: 10.1057/s41272-023-00469-z
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    Cited by:

    1. Ian Yeoman, 2024. "The dynamics and dimensions of pricing," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 23(6), pages 497-498, December.

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    More about this item

    Keywords

    Luxury goods and services prices; Recession periods; Fractional integration; ARFIMA model;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • G40 - Financial Economics - - Behavioral Finance - - - General

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