A reappraisal of Katona’s adaptive theory of consumer behaviour using U.K. data

The objective of this paper is to conduct a reappraisal Katona's (1968) adaptive theory consumer behaviour, which maintains that discretionary consumption partly determined by attitudes and expectations households. Initially, using UK data, we follow Katona empirically examining whether changes in personal expenditure on durable goods are connected earlier movements confidence. Evidence lack stable relationship between these two variables encourages us perform disaggregated analysis involving 111 components four different forms consumption, enables construction an aggregate measure spending. We find sufficient criteria satisfied for the sentiment index be accepted as reliable predictor growth gratuitous expenditure. In conclusion, then, it would seem validity can revived if prepared discard assumption goods’ synonymous with