Andrea Pozzi, Associate Professor, Einaudi Institute for Economics and Finance
About half of the cyclical change in US non-durable consumption expenditure is due to changes in the products entering households’ consumption basket (the extensive margin). Changes in the basket are driven by fluctuations in the rate at which households add new products; removals are relatively acyclical. These patterns are largely explained by the fact that households respond to income increases by adopting new product varieties in their consumption basket. Fluctuations in household adoption cause a bias in the measurement of inflation, drive the aggregate demand for new products and amplify the long run welfare effects of aggregate shocks.
Speaker bio
Andrea Pozzi is Associate Professor at the Einaudi Institute for Economics and Finance and a Research Affiliate at CEPR. He obtained his PhD in Economics from Stanford University. His research falls into the area of empirical industrial organisation and he has worked extensively on the economics of the retail sector, specialising in the use of scanner data. More recently, he has started to investigate topics at the intersection between industrial organisation and household finance with a focus on the mortgage market.
Event timings
Date:
4 March 2020
Start Time:
12:30
End Time:
14:00