The Impact of Consumption Smoothing on the Development of the Czech Economy in the Most Recent 30 Years

Anotace: The household final consumption expenditure is an important factor in economic development and, at the same time, a reflection of households' economic behaviour. When economic recession occurs, households respond in their consumption not immediately, but with a certain delay, which somewhat slows down and alleviates the crisis. On the other hand, when recovery comes, a slower growth in consumption delays the economic boom. The Czech economy has undergone four crises in the most recent 30 years. The goal of the present paper is to establish whether the delayed consumption effect has been valid for the turbulent development in the Czech economy and what is the role played by expenditure on assets with different durability. Our source is the publicly available data from the Czech Statistical Office.