Growing up in a recession: beliefs and the macroeconomy
نویسندگان
چکیده
Growing Up in a Recession: Beliefs and the Macroeconomy Do generations growing up during recessions have different socio-economic beliefs than generations growing up in good times? We study the relationship between recessions and beliefs by matching macroeconomic shocks during early adulthood with self-reported answers from the General Social Survey. Using time and regional variations in macroeconomic conditions to identify the effect of recessions on beliefs, we show that individuals growing up during recessions tend to believe that success in life depends more on luck than on effort, support more government redistribution, but are less confident in public institutions. Moreover, we find that recessions have a long-lasting effect on individuals’ beliefs. JEL Classification: P16, E60, Z13
منابع مشابه
Beliefs shock and the macroeconomy∗
I study the role of “shattered” or “twisted” beliefs combined with Bayesian learning in a standard equilibrium business cycle framework. By adapting ideas from Cogley and Sargent (2008b) to the general equilibrium setting, I am able to study how a prior belief arising from the Great Depression may have influenced the macroeconomy during the last 75 years. In the model, households hold twisted b...
متن کاملHow do Expectations about the Macroeconomy A↵ect Personal Expectations and Behavior?⇤
Using a representative online panel from the U.S., we examine how people update their economic expectations and alter their economic behavior in response to changes in their macroeconomic expectations. We collect novel data on people’s subjective expectations regarding the probability of a recession and create exogenous variation in these expectations by providing respondents with di↵erent prof...
متن کاملThe impact of the macroeconomy on health insurance coverage: evidence from the Great Recession.
This paper investigates the impact of the macroeconomy on the health insurance coverage of Americans using panel data from the Survey of Income and Program Participation for 2004-2010, a period that includes the Great Recession of 2007-2009. We find that a one percentage point increase in the state unemployment rate is associated with a 1.67 percentage point (2.12%) reduction in the probability...
متن کاملMeasuring Economic Uncertainty Using the Survey of Professional Forecasters
Uncertainty about how the economy will evolve is a key concern for households and firms. People’s views on how likely it is that the economy will be growing, stagnating, or in recession help shape the actions they ncertainty about how the economy will evolve is a key concern for households and firms. People’s views on how likely it is that the economy will be growing, stagnating, or in recessio...
متن کاملTraumatic Habit causing Gingival Recession in a child: 3-Year Follow Up
Introduction: The purpose of this report was to present a successful treatment approach in an unusual gingival recession as a result of finger sucking traumatic habit associated with high labial frenum. Case Report: A 10-year-old girl presented moderate pain, recession in the mandibular right incisor and finger sucking habit. The performed treatment was: oral hygiene instruction, use of palatal...
متن کامل