scholarly journals After the Great Recession: Regulating Financial Services for Low- and Middle-Income Communities

2012 ◽  
Author(s):  
Ronald J. Mann
Keyword(s):  
Great Recession ◽  
Financial Services ◽  
Middle Income ◽  
The Great Recession ◽  
Low And Middle Income

scholarly journals Inequality, Leverage, and Crises

2015 ◽  
Vol 105 (3) ◽  
pp. 1217-1245 ◽  
Author(s):  
Michael Kumhof ◽  
Romain Rancière ◽  
Pablo Winant
Keyword(s):  
Theoretical Model ◽  
Income Distribution ◽  
Great Recession ◽  
High Income ◽  
Middle Income ◽  
Income Share ◽  
The Great Recession ◽  
Income Ratio ◽  
Low And Middle Income

The paper studies how high household leverage and crises can be caused by changes in the income distribution. Empirically, the periods 1920–1929 and 1983–2008 both exhibited a large increase in the income share of high-income households, a large increase in debt leverage of low- and middle-income households, and an eventual financial and real crisis. The paper presents a theoretical model where higher leverage and crises are the endogenous result of a growing income share of high-income households. The model matches the profiles of the income distribution, the debt-to-income ratio and crisis risk for the three decades preceding the Great Recession. (JEL D14, D31, D33, E32, E44, G01, N22)

Factors Associated With Hiring and Firing Financial Advisors During the Great Recession

2019 ◽  
Vol 30 (2) ◽  
pp. 289-303
Author(s):  
Yuanshan Cheng ◽  
Charlene M. Kalenkoski ◽  
Philip Gibson
Keyword(s):  
Great Recession ◽  
Financial Services ◽  
Significant Loss ◽  
Economic Downturn ◽  
Financial Advisors ◽  
Net Worth ◽  
The Great Recession ◽  
Financial Advisor ◽  
Client Relationship ◽  
Hiring And Firing

From 2007 to 2009, the U.S. economy went through a deep economic downturn which is popularly known as the Great Recession. It resulted in a significant loss of wealth for many investors. While some investors sought the advice of financial advisors; others did not. This study examines the economic situation of households using the National Longitudinal Survey of Youth (NLSY) and analyzes the financial advisor–client relationship during the Great Recession to determine who fired or hired a financial advisor during this period. The results indicate that losing money, measured by a decrease net worth, was not the main reason why clients fired their financial advisor during the Great Recession. Interestingly, the results also show that experiencing a decrease in net worth was not the main reason why individuals pursued the services of a financial adviser during this period. Instead, current income and an increase in income were the primary factors that impacted the client–advisor relationship during the financial crisis. These results are consistent with consumer demand theory in which financial services are a normal good that people purchase less of when their income falls.

Cashing in on Distress: The Expansion of Fringe Financial Institutions During the Great Recession

2016 ◽  
Vol 54 (4) ◽  
pp. 663-696 ◽  
Author(s):  
Jacob W. Faber
Keyword(s):  
New York ◽  
Great Recession ◽  
Financial Services ◽  
Spatial Organization ◽  
Service Providers ◽  
Safety Net ◽  
Wealth Accumulation ◽  
Investment Policies ◽  
The Great Recession ◽  
The Rich

The Great Recession was a consequence of widening inequality and the growth of a tiered financial services system, in which the rich and the poor have access to vastly different tools for wealth accumulation. The spatial organization of these dynamics created neighborhoods vulnerable to predation on behalf of subprime lenders and other fringe service providers. This project seeks to understand the reproduction of institutional marginalization in consumer finance. Results show that racially isolated neighborhoods in New York City, where subprime lending and foreclosures were common, were uniquely vulnerable during the Great Recession and were communities where check cashing outlets (CCOs) sprouted, highlighting a mechanism for the reproduction of inequality over time. CCOs cost more per transaction than a checking account—potentially totaling tens of thousands of dollars over a career. The link between widening financial services inequality and the recession’s consequences provides a strong impetus for safety net and community investment policies.

scholarly journals Consumer Protection for Financial Inclusion in Low- and Middle-Income Countries: Bridging Regulator and Academic Perspectives

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Seth Garz ◽  
Xavier Giné ◽  
Dean Karlan ◽  
Rafe Mazer ◽  
Caitlin Sanford ◽  
...  
Keyword(s):  
Financial Services ◽  
Imperfect Information ◽  
Future Research ◽  
Annual Review ◽  
Publication Date ◽  
Middle Income ◽  
Middle Income Countries ◽  
Potential Problems ◽  
Growth And Change ◽  
Low And Middle Income

Markets for consumer financial services are growing rapidly in low- and middle-income countries and are being transformed by digital technologies and platforms. With growth and change come concerns about protecting consumers from firm exploitation due to imperfect information and contracting as well as from their own decision-making limitations. We seek to bridge regulator and academic perspectives on these underlying sources of harm and five potential problems that can result: high and hidden prices, overindebtedness, postcontract exploitation, fraud, and discrimination. These potential problems span product markets old and new and could impact micro- and macroeconomies alike. Yet there is little consensus on how to define, diagnose, or treat such problems. Evidence-based consumer financial protection will require substantial advances in theory and especially empirics, and we outline key areas for future research. Expected final online publication date for the Annual Review of Financial Economics, Volume 13 is November 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

scholarly journals Impacts of the 2008 Great Recession on dietary intake: a systematic review and meta-analysis

2021 ◽  
Vol 18 (1) ◽  
Author(s):  
Rosemary H. Jenkins ◽  
Eszter P. Vamos ◽  
David Taylor-Robinson ◽  
Christopher Millett ◽  
Anthony A. Laverty
Keyword(s):  
Confidence Interval ◽  
Dietary Intake ◽  
Energy Intake ◽  
Great Recession ◽  
Fast Food ◽  
Meta Analysis ◽  
Dietary Quality ◽  
Middle Income ◽  
The Great Recession ◽  
Middle Income Countries

Abstract Background The 2008 Great Recession significantly impacted economies and individuals globally, with potential impacts on food systems and dietary intake. We systematically reviewed evidence on the impact of the Great Recession on individuals’ dietary intake globally and whether disadvantaged individuals were disproportionately affected. Methods We searched seven databases and relevant grey literature through June 2020. Longitudinal quantitative studies with the 2008 recession as the exposure and any measure of dietary intake (energy intake, dietary quality, and food/macronutrient consumption) as the outcome were eligible for inclusion. Eligibility was independently assessed by two reviewers. The Newcastle Ottawa Scale was used for quality and risk of bias assessment. We undertook a random effects meta-analysis for changes in energy intake. Harvest plots were used to display and summarise study results for other outcomes. The study was registered with PROSPERO (CRD42019135864). Results Forty-one studies including 2.6 million people met our inclusion criteria and were heterogenous in both methods and results. Ten studies reported energy intake, 11 dietary quality, 34 food intake, and 13 macronutrient consumption. The Great Recession was associated with a mean reduction of 103.0 cal per adult equivalent per day (95% Confidence Interval: − 132.1, − 73.9) in high-income countries (5 studies) and an increase of 105.5 cal per adult per day (95% Confidence Interval: 72.8, 138.2) in middle-income countries (2 studies) following random effects meta-analysis. We found reductions in fruit and vegetable intake. We also found reductions in intake of fast food, sugary products, and soft drinks. Impacts on macronutrients and dietary quality were inconclusive, though suggestive of a decrease in dietary quality. The Great Recession had greater impacts on dietary intake for disadvantaged individuals. Conclusions The 2008 recession was associated with diverse impacts on diets. Calorie intake decreased in high income countries but increased in middle income countries. Fruit and vegetable consumption reduced, especially for more disadvantaged individuals, which may negatively affect health. Fast food, sugary products, and soft drink consumption also decreased which may confer health benefits. Implementing effective policies to mitigate adverse nutritional changes and encourage positive changes during the COVID-19 pandemic and other major economic shocks should be prioritised.

“Return” of the State: “First Aid” during Crisis or Steady Trend?

2010 ◽  
pp. 18-31
Author(s):  
M. Klinova
Keyword(s):  
Financial Crisis ◽  
Great Recession ◽  
Financial Services ◽  
First Aid ◽  
The State ◽  
Real Economy ◽  
State Control ◽  
Anglo Saxon ◽  
The Great Recession ◽  
The World

The author analyses the rise of State control in the economy due to the world financial crisis and the "Great Recession" of 2008–2009. Anti-crisis measures are being studied both at supranational and national levels. There are two main models of stimulus packages – Anglo-Saxon and Continental depending on the spheres where the State concentrates its efforts. The first model targets primarily financial services, the second one focuses mainly on real economy. Apparently, the compromise between these two trends seems to be inevitable.

Poverty Measurement

2017 ◽  
Author(s):  
Timothy M. Smeeding
Keyword(s):  
Great Recession ◽  
Current Practice ◽  
Developing Nations ◽  
Poverty Measurement ◽  
Absolute Poverty ◽  
Social Scientists ◽  
Middle Income ◽  
The Great Recession ◽  
Middle Income Countries ◽  
Empirical Estimates

This article focuses on the complexities and idiosyncrasies of poverty measurement, from its origins to current practice. It first considers various concepts of poverty and their measurement and how economists, social statisticians, public policy scholars, sociologists, and other social scientists have contributed to this literature. It then discusses a few empirical estimates of poverty across and within nations, drawing primarily on data from the Luxembourg Income Study and the Organization for Economic Cooperation and Development (OECD) to highlight levels and trends in overall poverty, while also referring to the World Bank’s measures of global absolute poverty. In the empirical examinations, the article takes a look at rich and middle-income countries and some developing nations. It compares trends in relative poverty over different time periods and in relative and anchored poverty across the Great Recession.

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