scholarly journals Precautionary Saving and Consumption Fluctuations

2005 ◽  
Vol 95 (4) ◽  
pp. 1119-1143 ◽  
Author(s):  
Jonathan A Parker ◽  
Bruce Preston
Keyword(s):  
The United States ◽  
Precautionary Saving ◽  
Consumption Growth ◽  
Average Growth ◽  
Household Level ◽  
Nondurable Goods ◽  
Consumption Expenditures ◽  
New Information ◽  
Level Data ◽  
Consumption Fluctuations

This paper uses the consumption Euler equation to derive a decomposition of consumption growth into four sources. These four sources are new information, and three sources of predictable consumption growth: intertemporal substitution, changes in the preferences for consumption, and incomplete markets for consumption insurance. Using household-level data, we implement this decomposition for the average growth rate of consumption expenditures on nondurable goods in the United States from 1982 to 1997. The economic importance of precautionary saving rivals that of the real interest rate, but the relative importance of each source of movement in the volatility of consumption is not precisely measured.

scholarly journals Structural Change With Long‐Run Income and Price Effects

Econometrica ◽  
2021 ◽  
Vol 89 (1) ◽  
pp. 311-374 ◽  
Author(s):  
Diego Comin ◽  
Danial Lashkari ◽  
Martí Mestieri
Keyword(s):  
Structural Change ◽  
Developing Economies ◽  
The United States ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Household Level ◽  
Income Effects ◽  
Long Run ◽  
Level Data ◽  
Price Effects

We present a new multi‐sector growth model that features nonhomothetic, constant elasticity of substitution preferences, and accommodates long‐run demand and supply drivers of structural change for an arbitrary number of sectors. The model is consistent with the decline in agriculture, the hump‐shaped evolution of manufacturing, and the rise of services over time. We estimate the demand system derived from the model using household‐level data from the United States and India, as well as historical aggregate‐level panel data for 39 countries during the postwar period. The estimated model parsimoniously accounts for the broad patterns of sectoral reallocation observed among rich, miracle, and developing economies. Our estimates support the presence of strong nonhomotheticity across time, income levels, and countries. We find that income effects account for the bulk of the within‐country evolution of sectoral reallocation.

scholarly journals On the welfare cost of consumption fluctuations in the presence of memorable goods

2020 ◽  
Vol 11 (4) ◽  
pp. 1177-1214 ◽  
Author(s):  
Rong Hai ◽  
Dirk Krueger ◽  
Andrew Postlewaite
Keyword(s):  
Borrowing Constraints ◽  
Welfare Cost ◽  
Income Shocks ◽  
Income Risk ◽  
Household Level ◽  
Nondurable Goods ◽  
Empirical Estimates ◽  
Percentage Points ◽  
Consumption Fluctuations ◽  
Excess Sensitivity

We propose a new category of consumption goods, memorable goods, that generate a utility flow even after physical consumption. Empirically, memorable goods expenditures exhibit frequent zero monthly purchases and lumpy expenditure spikes. Memorable goods expenditures are 20% the size of nondurable expenditures, but three times as volatile. We then develop a consumption‐savings model with borrowing constraints and income risk that formalizes the notion of memorable goods and distinguishes them from other nondurable goods. We show that consumers optimally choose lumpy consumption of memorable goods. We then measure the welfare cost of consumption fluctuations using our calibrated model and empirically evaluate our calibrated model's predictions for the consumption response to predictable income changes. We find that the welfare cost of household‐level consumption fluctuations induced by income shocks fall from 20.4 to 12.3 percentage points if memorable goods are accounted for, and that empirical estimates of excess sensitivity of consumption may significantly be driven by memorable goods expenditures.

scholarly journals Do Prices and Attributes Explain International Differences in Food Purchases?

2014 ◽  
Vol 104 (3) ◽  
pp. 832-867 ◽  
Author(s):  
Pierre Dubois ◽  
Rachel Griffith ◽  
Aviv Nevo
Keyword(s):  
United States ◽  
Caloric Intake ◽  
The United States ◽  
Household Level ◽  
Food Purchases ◽  
The United Kingdom ◽  
Level Data ◽  
Nutritional Characteristics ◽  
Cross Country ◽  
Compositional Patterns

Food purchases differ substantially across countries. We use detailed household-level data from the United States, France, and the United Kingdom to (i) document these differences; (ii) estimate a demand system for food and nutrients; and (iii) simulate counterfactual choices if households faced prices and nutritional characteristics from other countries. We find that differences in prices and characteristics are important and can explain some difference (e.g., United States–France difference in caloric intake) but generally cannot explain many of the compositional patterns by themselves. Instead, it seems an interaction between the economic environment and differences in preferences is needed to explain cross-country differences. (JEL D12, I12, L11, L66, Q11)

The United States as the Trade Partner of Poland in te Context of the Transatlantic Trade and Investment Partnership (TTIP)

2014 ◽  
Vol 9 (3) ◽  
pp. 201-213
Author(s):  
Renata Marks-Bielska ◽  
Wiesława Lizińska ◽  
Izabela Serocka
Keyword(s):  
Growth Rate ◽  
Foreign Trade ◽  
The United States ◽  
Average Growth ◽  
Transatlantic Trade ◽  
Central Statistical ◽  
The Usa ◽  
Central Statistical Office ◽  
Trade Partner ◽  
Structure Of Trade

Evaluation of the importance of the USA as the trade partner of Poland is the main objective of the paper, based on the changes in the value of trade during the years 2000-2012 and changes in the structure of trade during the years 2008-2012. The data from the Statistical Yearbooks of Foreign Trade published by the Central Statistical Office was used. The potential for foreign trade growth was illustrated using the simplified analysis based on the gravity model of foreign trade concept. Gradually increasing value of Polish trade with the USA (the average growth rate 9.8%, EU-15 countries 13.1%). Polish exports are characterised by a higher than imports growth rate (USA - exports growth by 12.5%, imports 9.2%, EU-15 - exports 15.1%, imports 11.6%). Trade is strongly dominated by position of one group of products (over 30% share in both exports and imports). The potential of trade is poorly exploited currently. Trade was focused mainly on the countries situated in the close neighbourhood (mainly the EU countries with the domination of Germany).

Hasty Pudding Versus Tasty Bread: Regional Variations in Diet and Nutrition during the Industrial Revolution

2012 ◽  
pp. 9-30 ◽  
Author(s):  
Sara Horrell ◽  
Deborah Oxley
Keyword(s):  
Dairy Products ◽  
Industrial Revolution ◽  
Local Economy ◽  
Household Level ◽  
Level Data ◽  
Other Information ◽  
Level Information ◽  
Local Supply ◽  
Key Aspects ◽  
Nutritional Score

Using parish-level information from Sir F.M. Eden's The state of the poor (1797) we can identify typical diets for the counties of England. These diets varied considerably and afforded very different standards of nutrition. We compute a nutritional score for this diet, paying attention to the presence of vitamins, minerals and micronutrients shown to be essential for health and growth in constructing this measure. Other information in the reports allows us to relate county-level nutrition to factors in the local economy. In particular we find nutrition was positively related to the availability of common land in the area and to women's remunerated work if conducted from home. Lack of common land and little local supply of dairy products also pushed households into buying white wheaten bread rather than baking their own wholemeal loaf. Replicating some of this analysis with household-level data confirms these results. Diet also maps onto stature: male convicts to Australia were significantly taller if they originated in a county with a more nutritious diet. This verifies the important impact of nutrition on stature and demonstrates the sensitivity of height as a measure of key aspects of welfare.

RAILROAD INVESTING AND THE IMPORTANCE OF FINANCIAL ACCOUNTING INFORMATION IN 1880s AMERICA

2013 ◽  
Vol 40 (2) ◽  
pp. 55-89 ◽  
Author(s):  
Joel E. Thompson
Keyword(s):  
United States ◽  
Information Sources ◽  
Accounting Information ◽  
The United States ◽  
Financial Accounting ◽  
Wall Street ◽  
New Information ◽  
Other Information ◽  
Comprehensive Search ◽  
The Wall Street Journal

This study has a two-fold purpose. First, it seeks to determine the importance of financial accounting information to railroad investors (and speculators) in 1880s America. Second, a further goal is to ascertain what financial accounting information was readily available for use by these investors. Based on a comprehensive search of books of the era, the 1880s were a time of expanding advice for railroad securities holders that required the use of financial accounting information. Furthermore, new information sources arose to help service investors' needs. Statistics by Goodsell and The Wall Street Journal were two such sources. This article reviews these publications along with the ongoing Commercial and Financial Chronicle and Poor's Manual of the Railroads of the United States. Each of these sources helped railroad investors to follow contemporary advice of gathering financial accounting and other information when investing.

Middle and Below Living Standards: What Can We Learn from Beyond Income Measures of Economic Well-being?

2018 ◽  
Author(s):  
Marii Paskov ◽  
Joan E. Madia ◽  
Tim Goedemé
Keyword(s):  
Well Being ◽  
Material Deprivation ◽  
Living Standards ◽  
Household Level ◽  
The Great Recession ◽  
Level Data ◽  
Working Age ◽  
Household Incomes ◽  
The Relationship ◽  
Economic Well Being

This chapter complements the income-based measures of living standards on which earlier chapters have focused by incorporating non-income dimensions of economic well-being into its analysis, including indicators of material deprivation, economic burdens, and financial stress. It analyses how working-age households around and below the middle of the income distribution fared in European countries in the years before, during, and after the Great Recession. Harmonized household-level data across the members of the EU are analysed to see whether the evolution of these various non-income measures present a similar or different picture to household incomes over time. To probe what lies behind the patterns this reveals, four quite different countries are then examined in greater depth. Finally, the chapter also explores the relationship between material deprivation for households around and below the middle and overall income inequality.

scholarly journals COVID-19-Related Changes in Perceived Household Food Waste in the United States: A Cross-Sectional Descriptive Study

2021 ◽  
Vol 18 (3) ◽  
pp. 1104
Author(s):  
Kelly Cosgrove ◽  
Maricarmen Vizcaino ◽  
Christopher Wharton
Keyword(s):  
Logistic Regression ◽  
Food Waste ◽  
The United States ◽  
Food Groups ◽  
Related Factors ◽  
Cross Sectional ◽  
Household Level ◽  
Binomial Logistic Regression ◽  
Household Food ◽  
Fresh Vegetables

Food waste contributes to adverse environmental and economic outcomes, and substantial food waste occurs at the household level in the US. This study explored perceived household food waste changes during the COVID-19 pandemic and related factors. A total of 946 survey responses from primary household food purchasers were analyzed. Demographic, COVID-19-related household change, and household food waste data were collected in October 2020. Wilcoxon signed-rank was used to assess differences in perceived food waste. A hierarchical binomial logistic regression analysis was conducted to examine whether COVID-19-related lifestyle disruptions and food-related behavior changes increased the likelihood of household food waste. A binomial logistic regression was conducted to explore the contribution of different food groups to the likelihood of increased food waste. Perceived food waste, assessed as the estimated percent of food wasted, decreased significantly during the pandemic (z = −7.47, p < 0.001). Food stockpiling was identified as a predictor of increased overall food waste during the pandemic, and wasting fresh vegetables and frozen foods increased the odds of increased food waste. The results indicate the need to provide education and resources related to food stockpiling and the management of specific food groups during periods of disruption to reduce food waste.

Estimating the Electoral Effects of Voter Turnout

2010 ◽  
Vol 104 (2) ◽  
pp. 268-288 ◽  
Author(s):  
THOMAS G. HANSFORD ◽  
BRAD T. GOMEZ
Keyword(s):  
Voter Turnout ◽  
Instrumental Variable ◽  
Presidential Elections ◽  
Empirical Test ◽  
The United States ◽  
Electoral Outcomes ◽  
Level Data ◽  
Electoral Choice ◽  
High Turnout ◽  
Specific Factors

This article examines the electoral consequences of variation in voter turnout in the United States. Existing scholarship focuses on the claim that high turnout benefits Democrats, but evidence supporting this conjecture is variable and controversial. Previous work, however, does not account for endogeneity between turnout and electoral choice, and thus, causal claims are questionable. Using election day rainfall as an instrumental variable for voter turnout, we are able to estimate the effect of variation in turnout due to across-the-board changes in the utility of voting. We re-examine the Partisan Effects and Two-Effects Hypotheses, provide an empirical test of an Anti-Incumbent Hypothesis, and propose a Volatility Hypothesis, which posits that high turnout produces less predictable electoral outcomes. Using county-level data from the 1948–2000 presidential elections, we find support for each hypothesis. Failing to address the endogeneity problem would lead researchers to incorrectly reject all but the Anti-Incumbent Hypothesis. The effect of variation in turnout on electoral outcomes appears quite meaningful. Although election-specific factors other than turnout have the greatest influence on who wins an election, variation in turnout significantly affects vote shares at the county, national, and Electoral College levels.

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