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In this paper we develop a novel approach to measuring individual welfare within households, recognizing that individuals may have both different preferences (particularly regarding public consumption) and differential access to resources. We construct a money metric measure of welfare that...
Persistent link: https://www.econbiz.de/10014635608
This paper studies how and why households adjust their spending, saving, and borrowing in response to transitory income shocks. We leverage new large-scale survey data to first quantitatively assess households' intertemporal marginal propensities to consume (MPCs) and deleverage (MPDs) (the...
Persistent link: https://www.econbiz.de/10014512045
We estimate the unconditional distribution of the marginal propensity to consume (MPC) using clustering regression applied to the 2008 economic stimulus payments. By deviating from the standard approach of estimating MPC heterogeneity using interactions with observables, we can recover the full...
Persistent link: https://www.econbiz.de/10014544800
Does mental accounting matter for total consumption expenditures? We exploit a unique setting in which individuals exogenously received a new credit card, without requesting one. Using random variation in the time of receipt we show that individuals temporarily increase total consumption...
Persistent link: https://www.econbiz.de/10014337846
We study the redistributive effects of inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth; yet, while...
Persistent link: https://www.econbiz.de/10014372429
How does income from international migrant labor affect the long-run development of migrant-origin areas? We leverage the 1997 Asian Financial Crisis to identify exogenous changes in international migrant income across regions of the Philippines, derived from spatial variation in exposure to...
Persistent link: https://www.econbiz.de/10013172161
benefits as well as costs. Among the former, one of the most important is lower costs for migrants' remittances. Some of the …
Persistent link: https://www.econbiz.de/10012696398
By putting together a relatively large data set on bilateral remittances of emigrants, this paper is able to shed light … on the important hypothesis of smoothing. The smoothing hypothesis is that remittances are countercyclical with respect … affirmation of smoothing is important for two reasons. First, it suggests that remittances should be placed on the list of …
Persistent link: https://www.econbiz.de/10012463230
Millions of households in developing countries receive financial support from family members working overseas. How do … peso leads to increases in household remittances received from overseas. The estimated elasticity of Philippine …-peso remittances with respect to the Philippine/foreign exchange rate is 0.60. These positive income shocks lead to enhanced human …
Persistent link: https://www.econbiz.de/10012466340
in Mexico due to migration. The principal hypothesis of this study is that remittances, knowledge and experience … remittances and socioeconomic conditions of the communities. In a third section the effect over time is estimated, relating per … significant relation between per capita income growth and the percentage of households that receive remittances across communities …
Persistent link: https://www.econbiz.de/10012467247