| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w27552 |
| 来源ID | Working Paper 27552 |
| Wealth, Race, and Consumption Smoothing of Typical Income Shocks | |
| Peter Ganong; Damon Jones; Pascal J. Noel; Fiona E. Greig; Diana Farrell; Chris Wheat | |
| 发表日期 | 2020-07-20 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | We estimate the elasticity of consumption with respect to income using an instrument based on firm-wide changes in pay. While much of the consumption-smoothing literature uses variation in unusual windfall income, this instrument captures the temporary income variation that households typically experience. Furthermore, this estimator is precise, allowing us to address an open question about how much the elasticity varies with wealth. We find a much lower consumption response for high-liquidity households, which may help discipline structural models. We then use this instrument to study how wealth shapes racial inequality. An extensive body of work documents a substantial racial wealth gap. However, less is known about how this gap translates into differences in welfare on a month-to-month basis. We find that black (Hispanic) households cut their consumption 50 (20) percent more than white households when faced with a similarly-sized income shock. Nearly all of this differential pass-through of income to consumption is explained, in a statistical sense, by differences in liquid wealth. Combining our empirical estimates with a model, we show that the welfare cost of income volatility is at least 50 percent higher for black households and 20 percent higher for Hispanic households than it is for white households. |
| 主题 | Macroeconomics ; Consumption and Investment ; Labor Economics ; Demography and Aging ; Unemployment and Immigration |
| URL | https://www.nber.org/papers/w27552 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/585225 |
| 推荐引用方式 GB/T 7714 | Peter Ganong,Damon Jones,Pascal J. Noel,et al. Wealth, Race, and Consumption Smoothing of Typical Income Shocks. 2020. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w27552.pdf（1943KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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