Consumer Spending and Customer Satisfaction: Untying the Knot

Table 2

Error correction coefficients.

	Coefficient	𝑡-statistic
Real discretionary consumption expenditures	−0.4940	−2.53
Real personal disposable income	0.3387	1.51
Revolving consumer credit	−0.3978	−1.98
Nonrevolving consumer credit	0.1328	0.92
Debt-service ratio	−0.1098	−0.60

Error correction model coefficients on lagged cointegrating residual from MARS model; regressions specify the change in the variable against a constant and up to three own lagged changes, and up to three lagged changes in each basis function identified by the MARS model and the lagged cointegrating regression residual. Robust standard errors using the Newey-West covariance estimator with a lag length of two were used to construct the 𝑡-statistics.