The Extensive Margin of Aggregate Consumption Demand

• 成果类型: Article
• 署名作者: Michelacci, Claudio; Paciello, Luigi; Pozzi, Andrea
• 署名单位: Hautes Etudes Commerciales (HEC) Paris
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdab041
• 发表日期: 2022
• 页码: 909-947
• 关键词: economic stimulus payments; product; spillovers; prices; POLICY

摘要

About half of the change in U.S. non-durable consumption expenditure is due to changes in the products entering households' consumption basket (the extensive margin). Changes in the basket are driven by fluctuations in the rate at which households add products; removals fluctuate little. These patterns reflect that, in response to income increases, households adopt consumer products already available in the market. Household adoption amplifies the effects of fiscal transfers on consumption by more than 30%. Cyclical household adoption of products also implies that inflation measures based on a representative household consuming all varieties available in the market underestimate true household-level inflation by as much as 1% per year over the Great Recession in the consumption categories covered by our data.