scholarly journals Transitory Income Changes and Consumption Smoothing: Evidence from Mexico

2021 ◽  
Author(s):  
Manuela Angelucci ◽  
Carlos Chiapa ◽  
Silvia Prina ◽  
Irvin Rojas
Keyword(s):  
Consumption Smoothing ◽  
Transitory Income

scholarly journals Job Displacement Insurance and (the Lack of) Consumption-Smoothing

2021 ◽  
Vol 111 (3) ◽  
pp. 899-942
Author(s):  
François Gerard ◽  
Joana Naritomi
Keyword(s):  
High Sensitivity ◽  
Consumption Smoothing ◽  
Job Displacement ◽  
Severance Pay ◽  
Lump Sum ◽  
Transitory Income ◽  
Income Shock ◽  
Sources Of Variation ◽  
Employment Data

We study the spending profile of workers who experience both a positive transitory income shock (lump-sum severance pay) and a negative permanent income shock (layoff). Using de-identified expenditure and employment data from Brazil, we show that workers increase spending at layoff by 35 percent despite experiencing a 14 percent long-term loss. We find high sensitivity of spending to cash-on-hand across consumption categories and for several sources of variation, including predictable income drops. A model with present-biased workers can rationalize our findings, and highlights the importance of the timing of benefit disbursement for the consumption-smoothing gains of job displacement insurance policies. (JEL D12, G51, J65, J63, O12)

Financial Reforms and Consumption Smoothing

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Martin Boileau ◽  
Tianxiao Zheng
Keyword(s):  
South Africa ◽  
South Korea ◽  
Consumer Credit ◽  
Dynamic Stochastic General Equilibrium ◽  
Consumption Smoothing ◽  
Empirical Literature ◽  
Lower Income ◽  
Financial Reforms ◽  
Collateral Constraint ◽  
Dynamic Stochastic

Abstract We study how financial reforms affect the extent of consumption smoothing in a dynamic stochastic general equilibrium model of an emerging economy. Consistent with the empirical literature and reform efforts in South Korea and South Africa, we emphasize the relation between consumer credit and durable purchases, and model reforms as the relaxation of the collateral constraint on lower income households. We find that the relaxation of the collateral constraint accounts for a substantial share of the decline in consumption smoothing experienced in South Korea and South Africa.

Government consumption smoothing in a balanced budget regime

2015 ◽  
Vol 23 (2) ◽  
pp. 289-315 ◽  
Author(s):  
Lovisa Persson
Keyword(s):  
Consumption Smoothing ◽  
Government Consumption ◽  
Balanced Budget

Consumption Smoothing in the Zone Lacustre, Mali

2005 ◽  
Vol 14 (4) ◽  
pp. 489-519 ◽  
Author(s):  
Sarah Harrower ◽  
John Hoddinott
Keyword(s):  
Consumption Smoothing

Does Higher Transitory Income of Parents Permanently Increase the Income of Their Children?

2016 ◽  
Author(s):  
Frank McIntyre ◽  
Michelle M. Miller
Keyword(s):  
Transitory Income

scholarly journals Consumption Smoothing and Vulnerability in Russia

2007 ◽  
Author(s):  
Christopher J. Gerry ◽  
Carmen A. Li
Keyword(s):  
Consumption Smoothing

scholarly journals Consumption Smoothing and Exchange Rate Volatility

1995 ◽  
Vol 95 (108) ◽  
pp. 1
Author(s):  
Bart Turtelboom ◽  
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Consumption Smoothing

Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid

2004 ◽  
Vol 8 (3) ◽  
pp. 379-390 ◽  
Author(s):  
Sanjeev Gupta ◽  
Benedict Clements ◽  
Erwin R. Tiongson
Keyword(s):  
Foreign Aid ◽  
Consumption Smoothing ◽  
Food Aid ◽  
Global Food
Sign in / Sign up

Export Citation Format

Share Document