scholarly journals Impulsive Consumption and Financial Well-Being: Evidence from an Increase in the Availability of Alcohol

2020 ◽  
Author(s):  
Itzhak Ben-David ◽  
Marieke Bos
Keyword(s):  
Alcohol Consumption ◽  
Low Income ◽  
Liquidity Constraints ◽  
Well Being ◽  
Young Population ◽  
Higher Alcohol ◽  
Liquor Stores ◽  
Credit Demand ◽  
Commitment Devices ◽  
Low Income Households

Abstract The increased availability of alcohol may harm individuals who have present-focused preferences and consume more than initially planned. Using a nationwide experiment in Sweden, we study the credit behavior of low-income households around the expansion of liquor stores’ operating hours on Saturdays. Consistent with store closures serving as commitment devices, the policy led to higher credit demand, more default, increased dependence on welfare, and higher crime on Saturdays. The effects are concentrated on the young population due to higher alcohol consumption combined with tight liquidity constraints. The policy’s impact on indebtedness is estimated at 4.5 times the expenditure on alcohol.

scholarly journals The Benefits and Costs of Automotive Regulations for Low-Income Americans

2021 ◽  
pp. 1-32
Author(s):  
Kylie Conrad ◽  
John D. Graham
Keyword(s):  
Low Income ◽  
Automobile Industry ◽  
Well Being ◽  
Distributional Analysis ◽  
Data Systems ◽  
Cost Analyses ◽  
Benefit Cost ◽  
Available Information ◽  
Benefits And Costs ◽  
Low Income Households

Abstract Benefit-cost analyses of regulations address Kaldor-Hicks efficiency but rarely investigate the distribution of benefits and costs as experienced by low-income households. In order to fill this gap, this article assembles the available evidence to determine how regulations of the automobile industry may impact the well-being of low-income Americans. The scope of the investigation includes air pollution, safety and fuel-economy regulations. We find that performing benefit-cost analyses for low-income households is more challenging than commonly understood. Given the difficulties in completing distributional analysis with available information, the authors offer practical suggestions on how to change the federal data systems and the rulemaking process to ensure that information is collected about how future automobile regulations impact the well-being of the poor.

scholarly journals Frugality Is Hard to Afford

2019 ◽  
Vol 56 (1) ◽  
pp. 1-17 ◽  
Author(s):  
A. Yeşim Orhun ◽  
Mike Palazzolo
Keyword(s):  
Low Income ◽  
Financial Literacy ◽  
Liquidity Constraints ◽  
Good Deal ◽  
Financial Resources ◽  
Policy Makers ◽  
Catch Up ◽  
The Impact ◽  
Low Income Households

Intertemporal savings strategies, such as bulk buying or accelerating purchase timing to take advantage of a good deal, provide long-term savings in exchange for an increase in immediate spending. Although households with limited financial resources stand to benefit the most from these strategies, they are less likely to make use of them. The authors provide causal evidence that liquidity constraints impede low-income households’ ability to use these strategies, above and beyond the impact of other constraints. Exploiting recurring variation in household liquidity, this study shows that when low-income households have more liquidity, they partially catch up to higher-income households’ ability to use intertemporal savings strategies. The findings provide guidance to marketing managers and researchers regarding targeted promotional design and measurement of deal-proneness. For policy makers, they suggest a new path for decreasing the higher prices low-income households have been documented to pay for everyday goods. Policies have traditionally focused on increasing financial literacy or access to supermarkets. Our work suggests that providing greater liquidity can help low-income households make better use of savings opportunities already available to them.

scholarly journals The Effect of Economic Vulnerability on the Participation in Development Programs and the Socio-Economic Well-Being of Low-Income Households

Societies ◽  
2018 ◽  
Vol 8 (3) ◽  
pp. 60
Author(s):  
Wan Mustapa ◽  
Abdullah Al Mamun ◽  
Mohamed Ibrahim
Keyword(s):  
Low Income ◽  
Household Income ◽  
Well Being ◽  
Policy Formulation ◽  
Development Programs ◽  
Cross Sectional ◽  
Net Worth ◽  
Economic Vulnerability ◽  
Development Initiatives ◽  
Low Income Households

This study intends to examine the effect of economic vulnerability on participation in development initiatives, household income, micro-enterprise income and net worth of micro-enterprise asset among low-income households in the state of Kelantan, Malaysia. Adopting a cross-sectional design, this study collected data from randomly selected 450 micro-entrepreneurs who were being served by three major development organizations in Kelantan, Malaysia. The findings revealed that the level of economic vulnerability among the respondents had a significantly negative effect on the participation of development initiatives, household income, micro-enterprise income and the net worth of microenterprise asset among the low-income Kelantanese households. This study provided insights for a comprehensive policy formulation for rural development as it identified program participation issues and gaps faced by the targeted cohort, which if effectively addressed can lead to an increase in participation in development programs, together with household and micro-enterprise income and assets, among the low-income economically vulnerable households in Kelantan, Malaysia.

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