Dynamics and asymmetries between consumer sentiment and consumption in pre- and during-COVID-19 time: Evidence from the US

Document Type

Article

Publication Title

Journal of Economic Asymmetries

Publication Date

11-1-2021

Abstract

We study the dynamic relationships between consumer expenditures and consumer sentiment in the pre- and during the COVID-19 periods. Our results indicate that sentiment is closely related to consumption as consumers seem to maintain a long memory of the impact of sentiment during the period of the pandemic relative to the pre-pandemic period. We also found asymmetric behavior of consumption growth with and without the influence of sentiment during each sub-period. We offer some specific policy implications that are beneficial to the US economy and other countries.

Volume

24

DOI

10.1016/j.jeca.2021.e00227

ISSN

17034949

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