Consumer confidence, expenditure, and curtailment

Date of publication: June 15, 1982

Abstract:

In this study, we will analyze the data of the consumer surveys in The Netherlands, with help of principal component analysis. The derived components and the index of consumer sentiment are used as predictors of consumer expenditure, along with income data. Our hypothesis is that the derived components contribute to the explanation and prediction of consumer expenditure, even more than the index (Index of Consumer Sentiment, ICS) published by the CBS.

Willem Frederik van Raaij

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Henk J. Gianotten

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