Dynamics of Expenditures on Durable Goods: The Role of New-Product Quality

• 成果类型: Article
• 署名作者: Bertolotti, Fabio; Gavazza, Alessandro; Lanteri, Andrea
• 署名单位: University of London; London School Economics & Political Science; University of London; London School Economics & Political Science; Duke University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/uead006
• 发表日期: 2023
• 页码: 1641-1656
• 关键词: consumption; adjustment; INEQUALITY; GROWTH; income

摘要

We study the role of new-product quality for the dynamics of durable-good expenditures around the Great Recession. We assemble a rich dataset on US new-car markets during 2004-12, combining data on transaction prices with detailed information about vehicles' technical characteristics. During the recession, a reallocation of expenditures away from high-quality new models accounts for a significant decline in the dispersion of expenditures. In turn, car manufacturers introduced new models of lower quality. The drop in new-model quality persistently depressed the technology embodied in vehicles, and likely contributed to the slow recovery of expenditures.