Econometrica: Jul, 1957, Volume 25, Issue 3

The Market Demand for Durable Goods

https://doi.org/0012-9682(195707)25:3<423:TMDFDG>2.0.CO;2-H
p. 423-443

D. A. Rowe, Richard Stone

This paper contains a simple dynamic theory of demand in which distinctions are drawn between consumption and net investment and also between actual and equilibrium levels of consumption. On this basis analyses are made for clothing and for household durable goods for the interwar and postwar periods. No significant differences are found in the responses of the two periods and methods are given for analysing together the annual data available for the earlier period and the quarterly data available for the later one.