Auto Sales and Weather

Our post three weeks ago on the weather and auto sales argued that bad winter weather was responsible for the slowdown in consumer spending. It was likely to be a greater contributor than factors such as improving credit scores. We used variation across states in January temperature and showed that states where January was very cold had …

Auto Sales and Weather Read More »

Why the Income Distribution Matters for Macroeconomics

A central argument we have made on this blog and in our book is that the distribution of income/wealth matters a great deal for thinking about the macro-economy. Convincing some of this fact is not easy — many continue to work within a modeling framework in which all distributional considerations are assumed away, the so-called “representative-agent” framework. Perhaps the …

Why the Income Distribution Matters for Macroeconomics Read More »

Housing Market Slowdown?

We are crunching some numbers trying to figure out what is going on with the house prices. In the meantime, here are some links which suggest that perhaps the sharp rebound in house prices is cooling. Zillow forecasting Case-Shiller February report sees slowdown. From the housing master himself at calculatedriskblog. Erin Carlyle at Forbes explains the weirdness of …

Housing Market Slowdown? Read More »