Is Household Wealth Sustainable? An Examination of Asset Poverty Reentry After an Exit

Leonard, Tammy; Di, Wenhua

doi:10.1007/s10834-013-9357-0

Cited by 22 publications

(20 citation statements)

References 30 publications

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“…This finding implies that we must consider the risks associated with more productive portfolio allocations; high ratio of productive asset can sometimes lead to an erosion in a household's assets (Leonard & Di, 2013).…”

Section: Discussionmentioning

confidence: 99%

“…Lastly, as previously mentioned, the risks and returns need to be properly balanced in household asset portfolio (Leonard & Di, 2013). Accordingly, the wide distribution of financial education programs among disadvantaged group is needed to encourage the asset poor to make prudent investment decisions and accumulate assets.…”

Section: Discussionmentioning

confidence: 99%

“…Studies found that individuals (or households) were more likely to be asset poor if they were black, low income, less educated, unmarried, and renters (Caner & Wolff, 2004;Leonard & Di, 2013;Rank & Hirschl, 2010).…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

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Dynamics of Asset Poverty in South Korea

Weon¹,

Rothwell²

2017

Preprint

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Following the Asian Financial Crisis of 1997, Korea has suffered what many consider to be a severe poverty problem. Despite policy efforts to reduce poverty and economic recovery in the early 2000s, poverty affects many households and certain households are at risk of staying in poverty once they are in it. Using longitudinal panel data from 2005 to 2014, this study defines three indicators of poverty based on asset holdings, rather than income. It then examines the dynamics of asset poverty in Korea across the study period. The study's primary goal is to reveal differences across the three indicators and identify which groups of poor people in Korea have been structurally trapped in poverty. We applied a dynamic panel model of discrete choice to the Korean Welfare Panel Study (KOWEPS) from the 1 st to 10 th waves and show that, despite the indicator, the asset poor who experienced asset poverty in the previous surveyed year or at wave 1 are likely to fall into structural and persistent poverty over time. In addition, the probability of incurring asset poverty decreased with home ownership, higher disposable income, and greater diversification of the household portfolio. Future research should study the duration of asset poverty to complete a comprehensive picture of the asset poverty condition.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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Dynamics of Asset Poverty in South Korea

Weon¹,

Rothwell²

2017

Preprint

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“…36 The DHS protocol was approved by the institutional review boards at the University of Texas Southwestern Medical Center and the National Heart, Lung, and Blood Institute.…”

Section: Methodsmentioning

confidence: 99%

Property Values as a Measure of Neighborhoods

et al. 2016

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Background Researchers measuring relationships between neighborhoods and health have begun using property appraisal data as a source of information about neighborhoods. Economists have developed a rich tool kit to understand how neighborhood characteristics are quantified in appraisal values. This tool kit principally relies on hedonic (implicit) price models and has much to offer regarding the interpretation and operationalization of property appraisal data-derived neighborhood measures, which goes beyond the use of appraisal data as a measure of neighborhood socioeconomic status. Methods We develop a theoretically informed hedonic-based neighborhood measure using residuals of a hedonic price regression applied to appraisal data in a single metropolitan area. We describe its characteristics, reliability in different types of neighborhoods, and correlation with other neighborhood measures (i.e., raw neighborhood appraisal values, census block group poverty, and observed property characteristics). We examine the association between all neighborhood measures and body mass index. Results The hedonic-based neighborhood measure was correlated in the expected direction with block group poverty rate and observed property characteristics. The neighborhood measure and average raw neighborhood appraisal value, but not census block group poverty, were associated with individual body mass index. Conclusion We draw theoretically consistent methodology from the economics literature on hedonic price models to demonstrate how to leverage the implicit valuation of neighborhoods contained in publicly available appraisal data. Consistent measurement and application of the hedonic-based neighborhood measures in epidemiology will improve understanding of the relationships between neighborhoods and health. Researchers should proceed with a careful use of appraisal values utilizing theoretically informed methods such as this one.

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“…In 2009, $5403 was needed for a three-month cushion and $10,806 was needed for a 6-month cushion. Leonard and Di (2014) found that asset accumulation at or above levels equal to 9 months' worth of income at the income-poverty level was important for improving a family's odds of escaping asset poverty. In 2007, when families in the lowest-income quintile were asked how much savings they believe they needed for emergencies and other contingencies, the median response was $2000, a value substantially less than what is needed to cover three months of expenses (Bucks et al 2009).…”

Section: Buffer-stock Savingmentioning

confidence: 99%

Savings Account Ownership During the Great Recession

Rhine

Greene

et al. 2016

J Fam Econ Iss

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In the aftermath of the Great Recession, a substantial number of families were left financially at risk, especially those with lower income, less wealth, fewer years of education, and unstable employment. This study examined how families responded to the financial stresses of the Great Recession and found that families who were working age, had higher levels of education, and had become non-homeowners were more likely to maintain or open a basic savings account; whereas families who had lost a substantial amount of annual family income or wealth or were Black or Hispanic were more likely to have been without a savings account over the period. Insights from this study will help inform policymakers and others interested in encouraging family financial security and resiliency through basic savings accounts.

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Is Household Wealth Sustainable? An Examination of Asset Poverty Reentry After an Exit

Cited by 22 publications

References 30 publications

Dynamics of Asset Poverty in South Korea

Dynamics of Asset Poverty in South Korea

Property Values as a Measure of Neighborhoods

Savings Account Ownership During the Great Recession

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