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| Guglielmo Maria Caporale, Luis Alberiko Gil-Alana and Sakiru Solarin |
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| ''Persistence in US real personal consumption expenditure: durable versus non-durable goods'' |
| ( 2025, Vol. 45 No.2 ) |
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| This note examines persistence in US real personal consumption expenditure, distinguishing between durable and non-durable goods. For this purpose, fractional integration methods are applied to analyse data over the period from 1965q3 to 2024q4. The results suggest that seasonality is not an important feature of the two series. Further, while durables are characterised by short memory, non-durables exhibit long memory with a statistically significant and positive fractional integration parameter. This indicates that the effects of shocks last longer in the case of non-durables compared to durables. |
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| Keywords: Real personal consumption expenditure; durables; non-durables; persistence; fractional integration; shocks |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
C2 - Single Equation Models; Single Variables: General |
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| Manuscript Received : Jun 04 2025 | | Manuscript Accepted : Jun 30 2025 |
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