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 …

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Why We Love Cars

An integral part of macroeconomics is understanding business cycles, i.e. figuring out what drives changes in aggregate output. We have devoted the last many years trying to understand why large declines in output and employment – as seen in the Great Recession – occur. In trying to answer such questions, a major obstacle in macroeconomics is the …

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Investors Pulling Back — What Happens to Housing Now?

Bill McBride at calculatedriskblog.com (a must read in the economics blogosphere) has been doing some fantastic posts on the abrupt pull-back by investors in the U.S. housing market. They were very aggressively buying homes in depressed markets from 2010 to 2012 thanks to their relative wealth and ability to achieve good credit, but the excitement is now …

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