Consumption and income smoothing

Busato, Francesco; Chiarini, Bruno; Marzano, Elisabetta

doi:10.1080/00036840600949348

Cited by 3 publications

(7 citation statements)

References 31 publications

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“…Falling below the required level of income depicts a risk faced by a household. In such circumstances, a household can engage in ex ante and ex post actions to generate disposable income (Busato et al, ; Morduch, ; Seefeldt, ; Takasaki et al, ; Wik, ; Zeller, ). Ex ante income is the income a household anticipates earning through the use of its physical, human and social capital.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Accordingly, the feeding of savings, credit and insurance into ex ante income make a household more resilient to income shocks. Therefore, risk‐coping via income smoothing includes all possible ex ante actions by a household to smooth out income and thereby smooth adverse income shocks before these occur in current and future periods (Busato et al, ; Takasaki et al, ; Zeller, ). On the other hand, access to savings, credit and insurance can influence ex post income.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Accordingly, the feeding of savings, credit and insurance into ex post income make a household more resilient against income shocks. Therefore, risk‐coping via consumption smoothing includes all possible ex post actions by the household to smooth out disposable income and thereby smooth consumption patterns from income variability in current and in future periods (Busato et al, ; Gerry & Li, ; Krueger & Perri, ; Skoufias, ). When considering household actions of income and consumption smoothing, ‘one cannot simply look at the smoothness of consumption and know which type of smoothing mechanism is at work’.…”

Section: Review Of Literaturementioning

confidence: 99%

“…The terms income smoothing and consumption smoothing are widely used in the economics literature when describing household risk due to income shortages (Busato, Chiarini, & Marzano, ; Gerry & Li, ; Gervais & Klein, ; Morduch, ; Ravallion & Chaudhuri, ; Takasaki, Barham, & Coomes, ; Townsend, ). When households experience temporary losses of income, they face with idiosyncratic earning shock or risk that is peculiar to the individual or household.…”

Section: Introductionmentioning

confidence: 99%

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Use of microcredit for household income and consumption smoothing by low income communities

Wickramasinghe

Fernando

2017

Int J Consumer Studies

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This paper discusses findings of a study that investigated income, savings and consumption patterns of low income people and critical factors that influence the use of microcredit-a form of small instant loans targeted for low income people-for household income and consumption smoothing. The sample of the study consisted of households from low income communities living in a lower-middle income country-Sri Lanka. It was found that microcredit borrowers were using the loans for purposes that can be identified as income and consumption smoothing, which is beyond the ideas and intended practice of microcredit. The findings suggest that the consequences of using microcredit for income and consumption smoothing could be costly for households and the society at large.

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Section: Review Of Literaturementioning

confidence: 99%

Section: Review Of Literaturementioning

confidence: 99%

Section: Review Of Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Use of microcredit for household income and consumption smoothing by low income communities

Wickramasinghe

Fernando

2017

Int J Consumer Studies

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“…As we will see, the empirical effects of fiscal policy on these two components of GDP, regular and underground, may be very different. By modeling them as a single production aggregate, the literature has so far omitted to consider that tax evasion is a reaction of a "rational agent" to fiscal pressure (see Busato and Chiarini 2004;Busato et al 2008), providing potentially misleading results.…”

Section: Cholesky Decomposition and Structural Vecmmentioning

confidence: 99%

Fiscal multipliers and unreported production: evidence for Italy

Basile¹,

Chiarini

Luca

et al. 2015

Empir Econ

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This paper analyzes the effects of fiscal policy in Italy by defining a regular\ud GDP measure constructed as GDP net of government expenditure and evaded VAT\ud base.Within aVECframework, two alternative approaches are used in order to identify\ud fiscal policy shocks: on the one hand, the standard Cholesky identification, and on\ud the other hand, the “agnostic sign restriction” approach. The results reveal that we\ud cannot rely upon the estimates of fiscal policy multipliers in countries with a sizeable\ud unreported production, unless the dynamics of the hidden and regular components\ud of the GDP are disentangled. Changes in public spending and the tax rate generate a\ud reallocation from underground to the regular economy which contributes to obscure the\ud spending and tax effect on totalGDP. In addition, the restrictive policy harms economic growth for the perverse effects that impinge on the regular–irregular dynamics of the\ud GDP, highlighted by our model. Finally, the interaction between regular and unreported\ud production demonstrates that the link between the two sectors is very harmful in the\ud long term, since there is strong evidence that shocks to the unreported production have\ud long-lasting negative effects for the regular economy

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Noncompliant behaviors in general equilibrium: A survey

Chiarini

Maria

Marzano

2023

Journal of Economic Surveys

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This paper reviews the literature on dynamic general equilibrium models that incorporate noncompliant behaviors. It organizes contributions according to selected dimensions that denote important pillars of the macroeconomic literature and that are relevant to explaining the nature and role of non‐compliant behaviors. These pillars are business cycles, macroeconomic policies, labor markets, income inequality, and financial factors. Starting with studies from the early 2000s, when general equilibrium models first began to include noncompliant behaviors, our study provides a temporal excursus on the evolution of the phenomenon in this literature.

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Consumption and income smoothing

Cited by 3 publications

References 31 publications

Use of microcredit for household income and consumption smoothing by low income communities

Use of microcredit for household income and consumption smoothing by low income communities

Fiscal multipliers and unreported production: evidence for Italy

Noncompliant behaviors in general equilibrium: A survey

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