Income and wealth volatility: evidence from Italy and the U.S. in the past two decades

D’Ambrosio, Conchita; Menta, Giorgia; Wolff, Edward N.

doi:10.1007/s10888-020-09473-4

Cited by 5 publications

(2 citation statements)

References 33 publications

(26 reference statements)

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“…The above suggest, clearly, that the economic system favors certain, rather few, persons, and more so during a rare combination of a depression and a pandemic, proving to be inequitable (Menta et al, 2021)! The present USA administration (Finance Minister), moreover, mentioned that she is pre-occupied with the economic inequality, and with the fact that US society needs improvement...…”

Section: Part I: the Outstanding Faults Of Economic Societies 1936; 2021mentioning

confidence: 98%

A Microeconomic (Vintage) Model of a Shipping Company: A Proposed Depreciation Strategy

Γουλιέλμος¹

2021

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We dealt with an important part of fixed cost, i.e., the depreciation expense in managing a shipping company owning 20 intangible fixed assets (ships), characterized by different vintages (ages), and book values. Keynes drew our attention to the importance of capital for the economy, and he dealt with the ways not only to increase it, but also to keep it in tact, through replacement. When economists tried to make Keynes dynamic, however, (known as Keynesian growth theory), they faced with the problem that not only capital's productivity depends on capital's vintage, but also its embodied technical progress depends on age. In shipping, we use the concept of "sister 1 ship". We used also a questionnaire on shipping depreciation filled-out by 45 Greek shipping companies. The existing theory of depreciation is, for shipping, wrong, we believe! While accountants want capital to be replaced after its death, they "condemn" shipping firms to end, prematurely, when a severe cycle occurs! Depreciation is related to gross profits, instead of to market's conditions! Thus, we proposed an alternative shipping depreciation policy, using also an inexpensive statistical tool-a regression line-between ship age and price. When accountants etc. proposed depreciation for the first time, they ignored cycles, inflation and (shipping) depressions! We were surprised to find-out that economics … forbid "economies of scale", when average cost exceeds marginal cost, AC > MC! Any society which wants a faster growth, has to adopt embodied technical progress, reducing both capital and labor, than hitherto, and especially capital! Moreover, Society committed the mistake to create unequal income and wealth since Keynes's time (1936), something which re-appeared in its most grandiose form in 2019-2021, 1 A "sister ship" is the ship which is exactly the same as one or more previously ordered ships, for the benefits that this strategy offers. We may call them ships produced in series or in pairs with identical specifications. They could be better named twin ships. Their vintage may differ in months one after the other.

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Section: Part I: the Outstanding Faults Of Economic Societies 1936; 2021mentioning

confidence: 98%

A Microeconomic (Vintage) Model of a Shipping Company: A Proposed Depreciation Strategy

Γουλιέλμος¹

2021

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“…An increasing number of studies look at income instability in counties other than the US (e.g. (Chauvel and Hartung 2014;Van Kerm 2004;OECD 2011;Daly and Valletta 2008;Menta et al 2021)). The findings of these studies depend on the measure of volatility and the definition of income adopted, the time period considered and the country analised, possibly due to socio-demographic differences and differences in the labour market, the welfare system, and the dynamic of household formation (see Van Kerm 2004 for an analysis of how these differences may affect the income volatility estimates).…”

Section: Previous Work On Earnings and Income Instabilitymentioning

confidence: 99%

Household Earnings and Income Volatility in the UK, 2009–2017

Avram

Brewer²,

Fisher

et al. 2021

J Econ Inequal

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We study the volatility of sources of individual and household level income in the UK in the years 2009-2017, following the Great Recession and government austerity. We find that the volatility of (pre-tax) earnings and disposable income has fallen for the working-age in this period, largely due to fewer negative and large earnings shocks. For older individuals, we also find a fall in the volatility of private income, mainly due to fewer positive and large income shocks. Taxes and transfers help stabilise incomes, with social security cash benefits and income-dependent refundable tax credits reducing household private income volatility by around a quarter for the working age, and 40 percent for those aged 60 or over. However, over the sample period, taxes and benefits became less well correlated with earnings, reducing their ability to counteract swings in labour income. The findings illustrate the consequences of fiscal retrenchment and the cut-backs to welfare benefits on the stability of incomes.

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Measuring economic insecurity by combining income and wealth: an extended well-being approach

Petrov,

Romaguera-de-la-Cruz

2024

Rev Econ Household

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In this paper, we propose the use of an extended well-being approach to assess economic insecurity. Our main purpose is to study its dimension and identify its main drivers in the United States by overcoming the dichotomy between income and wealth. To this end, we approximate an extended well-being measure that includes monetary resources from income and the potential stream from wealth, which can be understood as an emergency reserve to cope with future economic difficulties but could also be a source of financial distress due to fluctuations in asset holdings and prices. We find that economic insecurity levels are larger when considering our extended well-being variable than income alone. Household income and non-liquid assets appear to be the main drivers of economic insecurity, although part of the US population was able to obtain higher returns on non-liquid assets and maintain their income levels.

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Income and wealth volatility: evidence from Italy and the U.S. in the past two decades

Cited by 5 publications

References 33 publications

A Microeconomic (Vintage) Model of a Shipping Company: A Proposed Depreciation Strategy

A Microeconomic (Vintage) Model of a Shipping Company: A Proposed Depreciation Strategy

Household Earnings and Income Volatility in the UK, 2009–2017

Measuring economic insecurity by combining income and wealth: an extended well-being approach

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