Skip to main content
padlock icon - secure page this page is secure

Consumer Expectations: A Residual Based Approach

Buy Article:

$52.00 + tax (Refund Policy)

This paper presents an economy‐wide consumer expectations indicator that reflects different degrees of optimism or pessimism with respect to consumers’ confidence in their economy. The indicator provides a useful complement to traditional economic indicators that are frequently used to compare countries, such as gross domestic product (GDP) in purchasing power parity (PPP) terms. Our indicator may be seen as representing the influence of social wealth on economic behavior–that is, of effects left out of a standard economic analysis. We use a theoretical approach to integrate the expectations measure with the International Comparison Program's (ICP) PPP GDP statistics which produces a measure we term “effective GDP.” Compared to the ICP's PPP figures, the measure of “effective GDP” differs from the ICP's PPP estimates by as much as four to five percent in the positive direction for apparently optimistic countries and as much as two percent downwards for pessimists.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: D12; D16; E10; Engel's Law; consumer expectations; optimism; pessimism; social wealth; standard of living

Document Type: Research Article

Publication date: December 1, 2017

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more