Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264943 
Year of Publication: 
2022
Series/Report no.: 
Working Paper No. 1/2022
Publisher: 
Norges Bank, Oslo
Abstract: 
This paper presents a novel method to estimate the depreciation rate of durable goods using a combination of identified marginal and average spending shares. We apply our method to Chinese spending responses to disposable income changes induced by monetary policy in 2008-2009. The marginal spending response is 0.40. Durable goods make up about 45% of this marginal spending response. By combining this marginal spending share on durables with an average spending share of 14%, we estimate the annual depreciation rate of durables in China to be 0.16.
Subjects: 
Consumption
Durables
Monetary Policy
JEL: 
E21
E52
Persistent Identifier of the first edition: 
ISBN: 
978-82-8379-220-1
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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