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The Determination of Expenditure On Consumer Durables

Published online by Cambridge University Press:  26 March 2020

Keith Cuthbertson
Keith Cuthbertson*
Affiliation:
National Institute of Economic and Social Research
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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.

Type
Articles
Information
National Institute Economic Review , Volume 94 , November 1980 , pp. 62 - 72
Copyright
Copyright © 1980 National Institute of Economic and Social Research

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Footnotes

∗

The author is greatly indebted to David Mayes for his valuable comments and suggestions. The computing assistance of Hilary Lowe is also gratefully acknowledged.

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