Question

For this short essay, assume you are a macroeconomic forecaster tasked with predicting US household saving following the COVID-19 Recession. Please describe the variables that will be necessary to model with saving. Outline the tests you will put your data through and explain the models you would use based upon the test results. Intuitively, what are some issues you may face using time series data dating back to 1960?

Answer 1

The economic damage that the coronavirus has caused to millions of consumers now might be too severe to expect Americans to go on post lockdown spending splurges.prior to COVID 19 related lockdown restrictions, the financial status of many Americans wasn't strong. Incomes have been stagnant, they have fallen for a majority of people for several decades .i mean, the only expectation is these highest earners, said Chris Farrell.even more disturbing "a lot of middle lower-income households, they never recovered financially from the great recession, which was a dozen years ago, "now, Americans could begin to change their spending habits in order to financially survive the economic fallout from this pandemic.the personal savings rate, it has been already jumped from 8% in February to more than 13% in March