Proceedings of the New York State Economics Association


Consumer Demand for Durable Goods, Nondurable Goods and Services

John J. Heim

vol. 2, October 2009, p. 22-32


Separate macroeconomic consumption demand functions are developed and tested for (1) durable goods, (2) nondurable goods and (3) services. These are compared for consistency with econometric studies of total consumer demand. U.S. data for 1960-2000 is used. The econometric method used was 2SLS with heteroskedasticity controls. The models explain 94 percent of the variance in demand for consumer durables, 86 percent of demand for nondurable consumer goods and 81 percent of services demand.


suggested citation:

John J. Heim. "Consumer Demand for Durable Goods, Nondurable Goods and Services." Proceedings of the New York State Economics Association. vol. 2, October 2009, p. 22-32

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