Follow us
Publications Commentary Research People Events News Resources and Videos About IFS
Home Publications Consumption during the Great Recession in Italy

Consumption during the Great Recession in Italy

Martina Celidoni, Michele De Nadai and Guglielmo Weber
IFS Working Paper W16/10

We use Italian micro data to investigate how consumers reacted to the Great Recession. In particular, we study the age profiles of non-durable consumption, durable purchases and wealth over the 2008-2012 period for different year-of-birth cohorts, and how they departed from the way they would have been had consumer behavior been the same as it was over the 1995-2006 period. We find that consumption dropped most for younger households - only part of these drops can be explained by the increase in unemployment. We also investigate whether the crisis had an impact on the way consumers allocate their spending among broad consumption bundles. We find that the budget elasticity of the demand for food changed during the recession period, particularly among
the young.

More on this topic

Press release
During the first national lockdown, spending plunged by around a third. But from October to November (the second English lockdown), spending in England increased by about 2%. While that’s considerably weaker than the 10% growth seen in Scotland over the same period, clearly the effects of the ...
IFS Working Paper W20/37
We study the introduction of a price floor for alcohol that is aimed at correcting for negative consumption externalities. Policy effectiveness depends on whether the measure achieves large reductions in the most socially costly consumption.
Briefing note
The current system of alcohol taxes in the UK is incoherent. The UK’s departure from the European Union offers an opportunity to improve the way that alcohol is taxed, as EU regulations that place constraints on the system of alcohol duties will no longer apply. In this briefing note, we provide ...