Shocks, Stocks, and Socks: Smoothing Consumption Over a Temporary Income Loss
نویسندگان
چکیده
منابع مشابه
Shocks, Stocks, and Socks: Smoothing Consumption over a Temporary Income Loss
We investigate how households in temporarily straitened circumstances due to an unemployment spell cut back on expenditures and how they spend marginal dollars of unemployment insurance (UI) benefit. Our theoretical and empirical analyses emphasize the importance of allowing for the fact that households buy durable as well as non-durable goods. The theoretical analysis shows that in the short r...
متن کاملShocks , stocks and socks :
Recent research has demonstrated that some households cut back on expenditures in an unemployment spell. Moreover, some of these households respond to variation in the transitory income provided by unemployment insurance benefits. This suggests that these households are constrained in the sense that they respond to variations in current income even if these do not have any permanent impact. In ...
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Rural households in many developing economies have incomes that vary seasonally. We explore the implications of this income seasonality for household consumption. We use household-level data from three Indian villages to document seasonal patterns in income and consumption, and to test whether income seasonality produces seasonal consumption variation. Our basic finding is that while there does...
متن کاملWorking Papers in Economics and Econometrics Shocks, Stocks and Socks: Consumption Smoothing and the Replacement of Durables during an Unemployment Spell
We present theoretical and empirical results on consumption during an unemployment spell. The theory model extends the conventional intertemporal allocation model to take explicit account of the fact that households buy clothing and small durable goods (such as pillows and plates) that are indivisible, irreversible and non-collateralisable. The theoretical analysis suggests that liquidity const...
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This paper addresses the question, whether and how employees use second job holdings to smooth out consumption shortfalls from non-anticipated wage shocks in their main employment. The analysis is based on the panel estimation of a dual job labour supply model a unique nationally representative data sets from Ukraine which contains detailed information on wage non-payment. The analysis accounts...
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ژورنال
عنوان ژورنال: Journal of the European Economic Association
سال: 2009
ISSN: 1542-4766,1542-4774
DOI: 10.1162/jeea.2009.7.6.1169