Association of negative financial shocks during the Great Recession with depressive symptoms and substance use in the USA: the CARDIA study

2020 ◽  
pp. jech-2020-213917 ◽  
Author(s):  
Samuel Longworth Swift ◽  
Tali Elfassy ◽  
Zinzi Bailey ◽  
Hermes Florez ◽  
Daniel J Feaster ◽  
...  
Keyword(s):  
Depressive Symptoms ◽  
Alcohol Use ◽  
Drug Use ◽  
Great Recession ◽  
Fixed Effects ◽  
Household Wealth ◽  
Future Research ◽  
Financial Shocks ◽  
The Great Recession ◽  
The Usa

BackgroundThe Great Recession of 2008 was marked by large increases in unemployment and decreases in the household wealth of many Americans. In the 21st century, there have also been increases in depressive symptoms, alcohol use and drug use among some groups in the USA. The objective of this analysis is to evaluate the influence of negative financial shocks incurred during the Great Recession on depressive symptoms, alcohol and drug use.MethodsWe employed a quasi-experimental fixed-effects design, using data from adults enrolled in the Coronary Artery Risk Development in Young Adults (CARDIA) study. Our financial shock predictors were within-person change in employment status, income and debt to asset ratio between 2005 and 2010. Our outcomes were within-person change in depressive symptoms score, alcohol use and past 30-day drug use.ResultsIn adjusted models, we found that becoming unemployed and experiencing a drop in income and were associated with an increase in depressive symptoms. Incurring more debts than assets was also associated with an increase in depressive symptoms and a slight decrease in daily alcohol consumption (mL).ConclusionOur findings suggest that multiple types of financial shocks incurred during an economic recession negatively influence depressive symptoms among black and white adults in the USA, and highlight the need for future research on how economic recessions are associated with health.

scholarly journals Unemployment and spell duration during the Great Recession in the EU

2015 ◽  
Vol 36 (2) ◽  
pp. 216-235 ◽  
Author(s):  
Carlos Gradín ◽  
Olga Cantó ◽  
Coral del Río
Keyword(s):  
Great Recession ◽  
Negative Impact ◽  
Labour Force ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Great Recession ◽  
Unemployment Spells ◽  
Practical Implications ◽  
The Eu

Purpose – The purpose of this paper is to analyze the different dynamic characteristics of unemployment in a selected group of European Union countries during the current Great Recession, which had unequal consequences on employment depending on the country considered. Design/methodology/approach – The paper follows Shorrocks’s proposal of a duration-sensitive measure of unemployment, and uses cross-sectional data reported by Eurostat coming from European Labour Force Surveys. Findings – The results add some evidence on the relevance of incorporating spells’ duration in measuring unemployment, finding remarkable differences in unemployment patterns in time among European countries. Research limitations/implications – In this paper unemployment is analyzed for all the labor force. Future research should investigate patterns across specific groups such as young people, women, immigrants or the low skilled. Practical implications – It is generally accepted that the negative impact of unemployment on individual welfare can be very different depending on its duration. However, conventional statistics on unemployment do not adequately capture to what extent the recession is not only increasing the incidence of unemployment but also its severity in terms of duration in time of ongoing unemployment spells. The paper shows an easy and practical way to do it in order to improve the understanding of the unemployment phenomenon, using information usually reported by statistical offices. Originality/value – First, the paper provides a tool for dynamic analysis of unemployment based on reported cross-sectional data. Second, the paper demonstrates the empirical relevance of considering spells’ duration when assessing differences in unemployment across countries or in unemployment trends. This is usually neglected or only partially addressed by most conventional measures of unemployment.

scholarly journals Financial shocks and inflation dynamics

2021 ◽  
pp. 1-29
Author(s):  
Angela Abbate ◽  
Sandra Eickmeier ◽  
Esteban Prieto
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Policy Implication ◽  
Vector Autoregressive Model ◽  
Financial Shocks ◽  
Trade Off ◽  
Vector Autoregressive ◽  
The Great Recession ◽  
Short Run ◽  
Dual Mandate

Abstract We assess the effects of financial shocks on inflation, and to what extent financial shocks can account for the “missing disinflation” during the Great Recession. We apply a Bayesian vector autoregressive model to US data and identify financial shocks through a combination of narrative and short-run sign restrictions. Our main finding is that contractionary financial shocks temporarily increase inflation. This result withstands a large battery of robustness checks. Negative financial shocks help therefore to explain why inflation did not drop more sharply in the aftermath of the financial crisis. Our analysis suggests that higher borrowing costs after negative financial shocks can account for the modest decrease in inflation after the financial crisis. A policy implication is that financial shocks act as supply-type shocks, moving output and inflation in opposite directions, thereby worsening the trade-off for a central bank with a dual mandate.

scholarly journals Betrayed by the Elites: How Corruption Amplifies the Political Effects of Recessions

2021 ◽  
pp. 001041402110474
Author(s):  
Carlos Sanz ◽  
Albert Solé-Ollé ◽  
Pilar Sorribas-Navarro
Keyword(s):  
Great Recession ◽  
Fixed Effects ◽  
Political Corruption ◽  
The Political ◽  
Difference In Difference ◽  
The Great Recession ◽  
Level Data ◽  
Political Effects ◽  
History Of ◽  
Municipal Level

We investigate whether corruption amplifies the political effects of economic crises. Using Spanish municipal-level data and a difference-in-difference strategy, we find that local unemployment shocks experienced during the Great Recession (2008–2015) increased political fragmentation. This effect was four times larger in municipalities exposed to malfeasance than in municipalities without a history of political corruption. We bolster this evidence by showing that, conditional on province and population strata fixed effects, there is no evidence of differential pre-trends. We also find that the interaction of unemployment and corruption harms the two traditional main parties and benefits especially the new party on the left ( Podemos).

scholarly journals Financialization at a watershed in the USA

2018 ◽  
Vol 22 (5) ◽  
pp. 488-508 ◽  
Author(s):  
Costas Lapavitsas ◽  
Ivan Mendieta-Muñoz
Keyword(s):  
Great Recession ◽  
Structural Breaks ◽  
Financial Regulation ◽  
Financial Sector ◽  
State Intervention ◽  
Mortgage Debt ◽  
The Great Recession ◽  
Us Economy ◽  
Macroeconomic Indicators ◽  
The Usa

In the period following the Great Recession of 2007–2009 the financialization of the US economy reached a watershed characterized by stagnant financial profits, falling proportions of financial sector and mortgage debt, and rising proportion of public debt. The main macroeconomic indicators of financialization in the USA show structural breaks that can be dated around the period of the Great Recession. The reliance of households on the formal financial system appears to have weakened for the first time since the early 1980s. The financial sector has lacked the dynamism of the previous three decades, becoming more reliant on government. The state has increased its own indebtedness and supported large financial institutions via unconventional monetary policy measures. At the same time, state intervention has tightened the regulatory framework for big banks. The future path of financialization in the USA will depend heavily on government policy with regard to state debt and financial regulation, although the scope for boosting financialization is narrow.

The Distribution of Wealth in America (1983–2013)

2020 ◽  
pp. 219-242
Author(s):  
John C. Weicher
Keyword(s):  
Great Recession ◽  
Home Ownership ◽  
Household Wealth ◽  
Distribution Of Wealth ◽  
The Great Recession ◽  
Home Values

This chapter covers a period of rising wealth followed by abrupt decline. Between 1983 and 2007, real median household wealth rose by 70 percent, from $80,000 to $136,000 (in 2013 dollars). This increase disappeared completely, however, in the Great Recession; by 2010, median wealth had dropped by 40 percent, to $82,000, and it did not improve by 2013. The typical household of 2013 was no wealthier than the typical household of 1983. In addition, the distribution became markedly more unequal during the Great Recession; the richest 10 percent experienced a smaller reduction of 10 percent. For families in the middle, the most important asset was their home, but in 2013, fewer of them were homeowners and home values dropped for those who were. The declines in home ownership and home values accounted for most of the loss in wealth for middle-wealth families as a group.

scholarly journals As Goes the City? Older Americans’ Home Upkeep in the Aftermath of the Great Recession

2019 ◽  
Vol 67 (2) ◽  
pp. 379-397
Author(s):  
Markus H Schafer ◽  
Jason Settels ◽  
Laura Upenieks
Keyword(s):  
Older Adults ◽  
Great Recession ◽  
Fixed Effects ◽  
Physical Space ◽  
Community Dwelling ◽  
Older Americans ◽  
Individual Level ◽  
The Great Recession ◽  
Fixed Effects Regression ◽  
Community Dwelling Older Adults

Abstract The private home is a crucial site in the aging process, yet the upkeep of this physical space often poses a challenge for community-dwelling older adults. Previous efforts to explain variation in disorderly household conditions have relied on individual-level characteristics, but ecological perspectives propose that home environments are inescapably nested within the dynamic socioeconomic circumstances of surrounding spatial contexts, such as the metro area. We address this ecological embeddedness in the context of the Great Recession, an event in which some U.S. cities saw pronounced and persistent declines across multiple economic indicators while other areas rebounded more rapidly. Panel data (2005–6 and 2010–11) from a national survey of older adults were linked to interviewer home evaluations and city-level economic data. Results from fixed-effects regression support the hypothesis that older adults dwelling in struggling cities experienced an uptick in disorderly household conditions. Findings emphasize the importance of city-specificity when probing effects of a downturn. Observing changes in home upkeep also underscores the myriad ways in which a city’s most vulnerable residents— older adults, in particular—are affected by its economic fortunes.

Grandparent Coresidence and Family Well-Being

2014 ◽  
Vol 654 (1) ◽  
pp. 110-126 ◽  
Author(s):  
Rachel E. Dunifon ◽  
Kathleen M. Ziol-Guest ◽  
Kimberly Kopko
Keyword(s):  
Marital Status ◽  
Great Recession ◽  
Living Arrangements ◽  
Well Being ◽  
Future Research ◽  
The Great Recession ◽  
The Family ◽  
New Research ◽  
Economic Well Being

U.S. children today have increasingly diverse living arrangements. In 2012, 10 percent of children lived with at least one grandparent; 8 percent lived in three-generational households, consisting of a parent and a grandparent; while 2 percent lived with a grandparent and no parent in the household. This article reviews the literature on grandparent coresidence and presents new research on children coresiding with grandparents in modern families. Findings suggest that grandparent coresidence is quite common and that its prevalence increased during the Great Recession. Additionally, these living arrangements are diverse themselves, varying by the marital status of the parent, the home in which the family lives, and the economic well-being of the family. Suggestions for future research are also proposed.

Subjective Invulnerability, Risk Behavior, and Adjustment in Early Adolescence

2011 ◽  
Vol 32 (4) ◽  
pp. 489-501 ◽  
Author(s):  
Patrick L. Hill ◽  
Peter M. Duggan ◽  
Daniel K. Lapsley
Keyword(s):  
Depressive Symptoms ◽  
Drug Use ◽  
Factor Structure ◽  
Early Adolescence ◽  
Early Adolescents ◽  
Future Research ◽  
Research Directions ◽  
Future Research Directions ◽  
And Coping ◽  
Psychological Risks

The current study investigated whether invulnerability manifests with adaptive and maladaptive outcomes during early adolescence. We sampled 248 (53% female; 63% Caucasian; [Formula: see text] years) early adolescents on the Adolescent Invulnerability Scale (AIS), and measures of drug use, delinquency, depressive symptoms, and mastery and coping. The AIS demonstrated a two-factor structure, which captured whether adolescents felt invulnerable to danger or psychological risks. Danger Invulnerability positively predicted delinquency and drug use. Conversely, Psychological Invulnerability negatively predicted depressive symptoms but positively predicted mastery and coping. These results suggest that felt invulnerability leads to both benefits and risks for early adolescents. Implications and future research directions are discussed.

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