Year: 2014
Author: Klodt, Henning, Hartmann, Anna
Credit and Capital Markets – Kredit und Kapital, Vol. 47 (2014), Iss. 3 : pp. 397–414
Abstract
Deflation and Postponed Consumption: the Micro-evidence
Deflation is said to dampen aggregate demand because consumers would defer purchases while waiting for prices to fall further in the future. We explore the validity of this reasoning at the level of individual goods, based on a new data set derived from German consumer price statistics. We find a number of goods where prices have actually been falling, but we find only limited evidence for related declines in demand. Our findings suggest that the widespread concerns about impaired aggregate consumption by deflation might lack a sound microeconomic foundation.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/ccm.47.3.397
Credit and Capital Markets – Kredit und Kapital, Vol. 47 (2014), Iss. 3 : pp. 397–414
Published online: 2014-09
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 18
Keywords: E31 D12 Deflation postponed consumption consumer price statistics
Author Details
| Section Title | Page | Action | Price |
|---|---|---|---|
| Deflation und Konsumstau: Mikroökonomische Evidenz | 1 |