Negative income shocks and redistributive preferences

2021 ◽  
Author(s):  
Anna Hochleitner
Keyword(s):  
Income Shocks ◽  
Negative Income

scholarly journals Has the Increased Attachment of Women to the Labor Market Changed a Family's Ability to Smooth Income Shocks?

2016 ◽  
Vol 106 (5) ◽  
pp. 247-251 ◽  
Author(s):  
Olga Gorbachev
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Family Income ◽  
Participation Rate ◽  
Income Shocks ◽  
Sharp Rise ◽  
The Great Recession ◽  
Negative Income ◽  
Insurance Mechanism ◽  
Lower Magnitude

An increase in a married woman's attachment to the labor market affected her family's ability to smooth unexpected income shocks. Between 1970 and 1990, the sharp rise in labor market attachment provided an increasingly important channel for smoothing shocks to spousal income. As the participation rate stabilized, this contribution to smoothing evened out. In the Great Recession, both spouses received negative income shocks, and access to transfer income became the main insurance mechanism. Volatility of consumption followed volatility of family income trends but at a lower magnitude. Families' ability to weather income shocks didn't change during the 1970-2010 period.

Consumer finance in Russia: Income shocks and consumption smoothing

2018 ◽  
pp. 69-91 ◽  
Author(s):  
M. O. Mamedli ◽  
A. A. Sinyakov
Keyword(s):  
Rural Areas ◽  
Household Finance ◽  
Consumption Smoothing ◽  
Lower Income ◽  
Income Shocks ◽  
Consumption Behavior ◽  
Negative Income ◽  
Income Shock ◽  
Consumption Strategies

On the basis of the Russian Survey of Household Finance , we investigate the consumption behavior of Russian households, who faced a negative income shock at the end of 2014. We also analyze the role of crisis-adjusting consumption strategies based on the instruments of financial market, namely an increase in the stock of debt or decrease in liquid and non-liquid assets. Results based on two identification procedures of income shocks show that Russian households were able to smooth around 50% of their income shock. The ability to smooth consumption is lower for those living in rural areas, households with higher levels of debt accumulated before 2014 and those with lower income. Overall, Russian households are not used to spend savings or increase their debt in response to the income changes with the exception of those who already had a higher level of debt by 2014. The results may have important implications for the Bank of Russia policy.

scholarly journals The consumption response to positive and negative income shocks

2018 ◽  
Vol 96 ◽  
pp. 1-15 ◽  
Author(s):  
Philip Bunn ◽  
Jeanne Le Roux ◽  
Kate Reinold ◽  
Paolo Surico
Keyword(s):  
Income Shocks ◽  
Negative Income

scholarly journals Do Output Contractions Cause Investment in Fiscal Capacity?

2017 ◽  
Vol 9 (2) ◽  
pp. 189-227 ◽  
Author(s):  
Christian Gillitzer
Keyword(s):  
Sales Tax ◽  
State Governments ◽  
Tax Rates ◽  
Income Shocks ◽  
Average Income ◽  
Tax Base ◽  
Fiscal Capacity ◽  
The Great Depression ◽  
Negative Income ◽  
Retail Sales Tax

This paper shows that an economic slump can induce a government to invest in fiscal capacity. Large negative income shocks stress the revenue-raising capability of narrow tax bases, making an increase in tax base breadth desirable relative to its fixed implementation cost. A broader tax base enables revenue to be raised at lower tax rates, and so lower deadweight loss. The behavior of US state governments during the Great Depression supports the model: states experiencing larger than average negative income shocks were more likely to adopt a retail sales tax than were states experiencing smaller than average income shocks. (JEL E32, E62, H25, H71, N42, N92)

Hit and Run? Income Shocks and School Dropouts in Latin America

2018 ◽  
Author(s):  
Paula Cerutti ◽  
Elena Crivellaro ◽  
German Reyes ◽  
Liliana D. Sousa
Keyword(s):  
Latin America ◽  
Income Shocks ◽  
School Dropouts ◽  
Hit And Run
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