Expected Income Growth and the Great Recession
16 Pages Posted: 29 Jan 2014
Date Written: March 1, 2013
Consumers’ expected income growth declined significantly during the Great Recession. It was the most severe drop ever observed in these data, and expectations have not yet fully recovered. Furthermore, this article shows that expected income growth is a strong predictor of actual future income and consumption growth.
Keywords: consumer expectations, consumption, forecasting
JEL Classification: C53, E37, E21, E17
Suggested Citation: Suggested Citation