scholarly journals Non-durable consumption and housing net worth in the Great Recession: Evidence from easily accessible data

2020 ◽  
Vol 189 ◽  
pp. 104176 ◽  
Author(s):  
Greg Kaplan ◽  
Kurt Mitman ◽  
Giovanni L. Violante
Keyword(s):  
Great Recession ◽  
Net Worth ◽  
The Great Recession ◽  
Durable Consumption

Introduction

2017 ◽  
Author(s):  
Stefan Homburg
Keyword(s):  
Great Recession ◽  
Rational Expectations ◽  
Borrowing Constraints ◽  
Distinctive Features ◽  
Net Worth ◽  
The Great Recession ◽  
External Finance ◽  
International Audience ◽  
Aims And Scope

Chapter 1 describes the book’s aims and scope. The main objective is to improve understanding of the Great Recession and its aftermath. The book provides a unified theoretical framework that uses dynamic general equilibrium models, or DGE, but dispenses with the rational expectations assumption. Its distinctive features are clean models with a rich institutional structure encompassing credit money, external finance, borrowing constraints, net worth, real estate, and commercial banks. Written for economists in universities, governments, and financial institutions, the book addresses an international audience.

Disparate Recoveries: Wealth, Race, and the Working Class after the Great Recession

2021 ◽  
Vol 695 (1) ◽  
pp. 173-192
Author(s):  
Fenaba R. Addo ◽  
William A. Darity
Keyword(s):  
Middle Class ◽  
Working Class ◽  
Great Recession ◽  
Wealth Inequality ◽  
Net Worth ◽  
The Great Recession ◽  
Consumer Finances ◽  
White Working Class ◽  
Using Data ◽  
The Relationship

What does it mean to be working class in a society of extreme racial wealth inequality? Using data from the Survey of Consumer Finances, we investigate the wealth holdings of Black, Latinx, and white working-class households during the post–Great Recession (pre–COVID-19) period that spanned 2010 to 2019. We then explore the relationship between working-class and middle-class attainment using a wealth-based metric. We find that, in terms of their net worth, fewer Black working-class households benefitted from the economic recovery than white working-class households. Among white households, the working class saw the greatest increase in wealth in both absolute and relative terms. Working-class households were less likely to be middle class as defined by their wealth holdings, and Black and Latinx households were also less likely to be middle class. For Black households, racial identity is a stronger predictor of wealth attainment than occupational sector.

Factors Associated With Hiring and Firing Financial Advisors During the Great Recession

2019 ◽  
Vol 30 (2) ◽  
pp. 289-303
Author(s):  
Yuanshan Cheng ◽  
Charlene M. Kalenkoski ◽  
Philip Gibson
Keyword(s):  
Great Recession ◽  
Financial Services ◽  
Significant Loss ◽  
Economic Downturn ◽  
Financial Advisors ◽  
Net Worth ◽  
The Great Recession ◽  
Financial Advisor ◽  
Client Relationship ◽  
Hiring And Firing

From 2007 to 2009, the U.S. economy went through a deep economic downturn which is popularly known as the Great Recession. It resulted in a significant loss of wealth for many investors. While some investors sought the advice of financial advisors; others did not. This study examines the economic situation of households using the National Longitudinal Survey of Youth (NLSY) and analyzes the financial advisor–client relationship during the Great Recession to determine who fired or hired a financial advisor during this period. The results indicate that losing money, measured by a decrease net worth, was not the main reason why clients fired their financial advisor during the Great Recession. Interestingly, the results also show that experiencing a decrease in net worth was not the main reason why individuals pursued the services of a financial adviser during this period. Instead, current income and an increase in income were the primary factors that impacted the client–advisor relationship during the financial crisis. These results are consistent with consumer demand theory in which financial services are a normal good that people purchase less of when their income falls.

scholarly journals HOUSING CHOICES AND THEIR IMPLICATIONS FOR CONSUMPTION HETEROGENEITY

2021 ◽  
pp. 1-20
Author(s):  
Eva de Francisco
Keyword(s):  
Transaction Costs ◽  
Great Recession ◽  
Borrowing Constraints ◽  
Empirical Literature ◽  
Income Shocks ◽  
Stylized Facts ◽  
Net Worth ◽  
Aggregate Consumption ◽  
The Great Recession ◽  
Significant Size

This paper proposes a model to jointly explain two stylized facts observed in the recent empirical literature—the existence of a significant size of wealthy hand-to-mouth consumers and negative marginal propensities to consume associated with housing upgrades. The key ingredients of the model are a realistic set of housing choices, sizable down payment requirements, transaction costs, and endogenous borrowing constraints. Moreover, in the presence of unanticipated income shocks, this richness in marginal propensities to consume has significant implications for aggregate consumption and helps explain the puzzling increase in savings by low net worth households observed during the Great Recession as well as the consumption responses to recent tax rebates.

Household Wealth Trends in the US, 1983 to 2010

2017 ◽  
Author(s):  
Edward N. Wolff
Keyword(s):  
Middle Class ◽  
Great Recession ◽  
Household Wealth ◽  
Net Worth ◽  
Sharp Fall ◽  
The Great Recession ◽  
The Us ◽  
Racial And Ethnic Disparity ◽  
Middle Class Families ◽  
High Share

This chapter investigates wealth trends from 1983 to 2010. Median wealth plummeted between 2007 and 2010 by 44%. The inequality of net worth, after almost two decades of little movement, was up sharply between 2007 and 2010. Relative indebtedness continued to expand for the middle class. The sharp fall in median net worth and the rise in its inequality from 2007 to 2010 are traceable to the high leverage of middle-class families and the high share of homes in their portfolio. The racial and ethnic disparity in wealth holdings, after remaining more or less stable from 1983 to 2007, widened considerably between 2007 and 2010. Hispanics, in particular, got hammered by the Great Recession in terms of net worth and net equity in their homes. Households under age 45 were also pummeled by the Great Recession, as their relative and absolute wealth declined sharply from 2007 to 2010.

Sign in / Sign up

Export Citation Format

Share Document