Modeling the relationship between non durable consumer expenditures and stock market prices: An empirical analysis for the period 2004-2014
Alexander Ian Middleton, Dylan Louis Schack
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BEA consumer expenditure data is divided into three components:(1) durable, (2) non durable, and (3)service expenditures. In this study we examine the relationship between non durable consumer expenditures and consumer discretionary and consumer staples sector price movements. Rational expectations theory suggests that increasing demand for non durable goods increases the sales and earnings of the firms operating in both of the above sectors. In turn, this results in rising sector prices. Using linear and log linear regression we test the hypothesis that the regression coefficients are positive and statistically significant. Quarterly data is used in the study with the time period under analysis, 2004-2014.
Trevor C. Collier
Primary Advisor's Department
Economics and Finance
Stander Symposium project
Arts and Humanities | Business | Education | Engineering | Life Sciences | Medicine and Health Sciences | Physical Sciences and Mathematics | Social and Behavioral Sciences
"Modeling the relationship between non durable consumer expenditures and stock market prices: An empirical analysis for the period 2004-2014" (2015). Stander Symposium Projects. 623.
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