1.
J Econ Asymmetries
; 24: e00227, 2021 Nov.
Article
in English
| MEDLINE | ID: covidwho-1433496
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.