UNDERSTANDING THE COSTS OF CONSUMER DURABLE ADJUSTMENTS
研究调整摩擦是否解释了家庭消费支出模式，发现耐用品调整的固定成本对匹配截面矩很重要，并分析了非耐用品和耐用品支出对收入冲击的反应。
This article examines whether adjustment frictions help account for the patterns of household consumption expenditures observed in the Consumer Expenditure Survey, namely, that the variance of log durable expenditure is four times larger than that of log nondurable expenditure for annual data and this gap substantially widens for quarterly data. Estimating a structural model of household consumption with nondurable and durable goods with the simulated method of moments, I find that the fixed costs associated with durable adjustments are important in matching the cross‐sectional moments. Using the estimated model, I also examine the response of nondurable and durable expenditures to income shocks.