Mortgage Prepayment and Path-Dependent Effects of Monetary Policy

How much ability does the Fed have to stimulate the economy by cutting interest rates? We argue that the presence of substantial debt in fixed-rate, prepayable mortgages means that the ability to stimulate the economy by cutting interest rates depends not just on their current level but also on their previous path. Using a household model of mortgage prepayment matched to detailed loan-level evidence on the relationship between prepayment and rate incentives, we argue that recent interest rate paths will generate substantial headwinds for future monetary stimuli. (JEL E32, E43, E52, E58, G21, G51)

Charitable Giving in Married Couples: Untangling the Effects of Education and Income on Spouses’ Giving

This research note looks beyond the unitary household model and analyzes the influence of household resources by gender on charitable giving. We investigate the intrahousehold variables of income and education and their effects on giving behaviors in married couples. We use data from the longitudinal Philanthropy Panel Study (2005–2017) to examine how spouses’ income and educational differences affect charitable giving behaviors and introduce fixed effects to control for unobserved heterogeneity. Initially, we find a positive relationship between both the husband’s and wife’s earned and unearned incomes and the likelihood and amount of giving by married couples. However, when fixed effects are used, we find women’s earned income to be significantly associated with all forms of giving, showing that women’s labor market earnings disproportionately influence giving behavior. Education is less of a factor in whether couples give and influences giving only when the husband has more education than the wife.

Household consumption allocation and the collective household model: Children share of household resources in The Gambia

This paper applies the collective household model to allocate household resources among household members. With a Collective Quadratic Almost Ideal Demand System (CQUAIDS) estimated by a Feasible Generalized Nonlinear Least Squares (FGNLS) method, it studies the household demand for six categories of household goods using household income and expenditure survey data from The Gambia, directed to studying the allocation of resources among young and adult members of households in The Gambia. It establishes the sharing rule for children and adult members of the household and shows the effect of demographic, distributive factor, price and income elasticities on the shares of household resources. The results establish that a higher share of resources goes for children while the sharing rule varies for different household types. Also, the findings show significant effects of demographic, distributive factor, price and income on the allocation of the household resources of consumption goods by the household.

A Qualitative Study on The Role of Community Health Workers In Influencing Social Connectedness Using The Household Model: A Case Study of Neno District, Malawi

Background: There is growing global recognition that community health workers (CHWs) play a key role in facilitating social connectedness. Through direct interactions and relationship building, CHWs link people to key services such as healthcare and social support. Several models aim to understand how CHWs facilitate these interactions, but the theory of change is not yet fully understood. In Neno District, Malawi, CHWs recently transitioned from a disease-focused model to what we call the “household model.” Under the household model, each CHW is assigned to several households to provide screening and linkage to care, as well as psychosocial and chronic disease support. We theorise that this public health approach facilitates social connectedness in the households and rural communities served by CHWs. We aim to understand drivers of influence on social connections from the CHW-, healthcare worker-, and patient perspectives. Methods: This was a cross-sectional qualitative study utilising focus group discussions (FGDs) and in-depth semi-structured interviews with purposively sampled community stakeholders, CHWs, health service providers, and patients (total N=180) from October 2018 through March 2020. Results: Participants reported improved social interactions and connectedness and increased access to health care in their communities following the transition to the household model. This was driven by factors including reduced stigma and discrimination, empowerment of households and community members, and fostering both social cohesiveness and individual agency in accessing health services. The main themes that emanated from this study are; expansion of care by CHWs, trust in CHW’s provision of care, and equal treatment of community members by CHWs. Conclusion: Our study demonstrates that through the polyvalent household model, CHWs foster high levels of social connectedness in the communities, evidenced by a reported reduction in stigma and discrimination and an increase in individual agency in accessing health services.

Similarities and Variations in Stepfamily Dynamics among Selected Asian Societies

Stepfamilies, an emerging family form in Asia, are gaining growing academic and social attention in Asia. This paper presents an overview of stepfamilies in Asia, based primarily on research findings in Japan, which suggest underlying two competing stepfamily models as key factors in understanding stepfamily dynamics: the “scrap and build” household model versus the expanded and interconnected network model. The findings in Japan are, then, juxtaposed with existing research findings on stepfamilies in East Asia and Singapore in terms of (a) cultural views on stepfamilies; (b) values of grandparenting, mothering, and fathering; and (c) family law and policies. Some commonalities are found in remaining influence of the “scrap and build” household model and in recent policy changes toward the expanded and interconnected network model, along with some variations, across these societies. Evidently, more studies across Asian societies are needed to obtain a clearer picture of stepfamilies in Asia.