scholarly journals Asymmetric Consumption Effects of Transitory Income Shocks

2017 ◽  
Author(s):  
Dimitris Christelis ◽  
Dimitris Georgarakos ◽  
Tullio Jappelli ◽  
Luigi Pistaferri ◽  
Maarten <!>van Rooij
Keyword(s):  
Income Shocks ◽  
Transitory Income

scholarly journals Permanent versus transitory income shocks over the business cycle

2021 ◽  
Vol 139 ◽  
pp. 103873
Author(s):  
Agnes Kovacs ◽  
Concetta Rondinelli ◽  
Serena Trucchi
Keyword(s):  
Business Cycle ◽  
Income Shocks ◽  
Transitory Income ◽  
The Business Cycle

scholarly journals The Distribution of Wealth and the MPC: Implications of New European Data

2014 ◽  
Vol 104 (5) ◽  
pp. 107-111 ◽  
Author(s):  
Christopher D. Carroll ◽  
Jiri Slacalek ◽  
Kiichi Tokuoka
Keyword(s):  
Wealth Distribution ◽  
Wealth Inequality ◽  
Income Shocks ◽  
Income Dynamics ◽  
Aggregate Consumption ◽  
Distribution Of Wealth ◽  
Marginal Propensity To Consume ◽  
Transitory Shocks ◽  
Transitory Income ◽  
Marginal Propensity

Using a standard, realistically calibrated model of buffer-stock saving with transitory and permanent income shocks, we study how cross-country differences in the wealth distribution and household income dynamics affect the marginal propensity to consume out of transitory shocks (MPC). Across the 15 countries in our sample, we find that the aggregate consumption response ranges between 0.1 and 0.4 and is stronger (i) in economies with large wealth inequality, where a larger proportion of households has little wealth, (ii) under larger transitory income shocks, and (iii) when we consider households only use liquid assets (rather than net wealth) to smooth consumption.

scholarly journals Happiness and the Persistence of Income Shocks

2015 ◽  
Vol 7 (4) ◽  
pp. 160-187 ◽  
Author(s):  
Christian Bayer ◽  
Falko Juessen
Keyword(s):  
Incomplete Markets ◽  
Instrumental Variable ◽  
Estimation Procedure ◽  
Well Being ◽  
Income Shocks ◽  
Transitory Shocks ◽  
Transitory Income ◽  
Observable Data ◽  
Per Se ◽  
Two Step Estimation

We reassess the empirical effects of income and employment on self-reported well-being. Our analysis makes use of a two-step estimation procedure that allows us to apply instrumental variable regressions with ordinal observable data. As suggested by the theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks. In line with this theory, we find that persistent shocks have a significant impact on happiness while transitory shocks do not. This also has consequences for inference about the happiness effect of employment. We find that employment per se is associated with a nonsignificant decline in happiness. (JEL D12, D52, I31, J22)

scholarly journals The Effect of Self-Reported Transitory Income Shocks on Household Spending

2012 ◽  
Vol 2012 (64) ◽  
pp. 1-36 ◽  
Author(s):  
Samuel Ackerman ◽  
◽  
John Edward Sabelhaus
Keyword(s):  
Income Shocks ◽  
Household Spending ◽  
Transitory Income

scholarly journals Asymmetric Consumption Effects of Transitory Income Shocks*

2019 ◽  
Vol 129 (622) ◽  
pp. 2322-2341 ◽  
Author(s):  
Dimitris Christelis ◽  
Dimitris Georgarakos ◽  
Tullio Jappelli ◽  
Luigi Pistaferri ◽  
Maarten van Rooij
Keyword(s):  
Representative Sample ◽  
Intertemporal Choice ◽  
Borrowing Constraints ◽  
Precautionary Saving ◽  
Income Shocks ◽  
Survey Questions ◽  
Finite Horizons ◽  
Transitory Income

Abstract We use the responses of a representative sample of Dutch households to survey questions that ask how much their consumption would change in response to unexpected, transitory income shocks (positive or negative). The questionnaire also distinguishes between relatively small income changes (a one-month increase or drop in income), and relatively larger ones (equal to three-months' income). The results are broadly in line with models of intertemporal choice with precautionary saving, borrowing constraints and finite horizons.

scholarly journals Asymmetric Consumption Effects of Transitory Income Shocks

2017 ◽  
Author(s):  
Dimitris Christelis ◽  
Dimitris Georgarakos ◽  
Tullio Jappelli ◽  
Luigi Pistaferri ◽  
Maarten <!>van Rooij
Keyword(s):  
Income Shocks ◽  
Transitory Income

scholarly journals Permanent versus Transitory Income Shocks over the Business Cycle

2019 ◽  
Author(s):  
Serena Trucchi ◽  
Concetta Rondinelli ◽  
Agnes Kovacs
Keyword(s):  
Business Cycle ◽  
Income Shocks ◽  
Transitory Income ◽  
The Business Cycle
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