Permanent versus Transitory Income Shocks over the Business Cycle

Kovacs, Agnes; Rondinelli, Concetta; Trucchi, Serena

doi:10.2139/ssrn.3258950

Cited by 4 publications

(3 citation statements)

References 12 publications

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“…The magnitude of the coefficients may depend on the fact that income shocks experienced shortly after the crisis are perceived as long‐lasting, even more for younger generations. This is in line with findings by Kovacs, Rondinelli and Trucchi (2019), who show that income shocks were largely perceived to be permanent during the 2011–13 Sovereign Debt Crisis.…”

Section: Robustness Checkssupporting

confidence: 92%

Intergenerational Precautionary Savings in Europe*

Scervini

Trucchi

2021

Oxf Bull Econ Stat

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In this paper, we study whether precautionary saving motives have an intergenerational component; namely whether and to what extent the income uncertainty of younger generations affects the savings of their parents. To this end, we exploit a cross-country European longitudinal household dataset collecting information on parents and their offspring, augmented with indicators for their offspring's income risk. We find that savings significantly respond to changes in income risk, also across generations. This finding is robust to several checks and displays heterogeneity across countries, which is consistent with substitutability between private and public insurance tools. JEL Classification numbers: D13, D14, C23. *The research is financed by the Blue Sky Research project, itself financed by the University of Pavia. Part of this work was developed when Trucchi was visiting ZEW's International Finance and Financial Management; its hospitality and financial support from DAAD are gratefully acknowledged. We thank Giuseppe Bertola, Markus

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Section: Robustness Checkssupporting

confidence: 92%

Intergenerational Precautionary Savings in Europe*

Scervini

Trucchi

2021

Oxf Bull Econ Stat

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“…This is especially appealing if the impact of income inequality on volunteerism is non-contemporaneous but instead takes time to manifest. Borrowing from the macroeconomic literature, we might interpret an individual's perception of regional income inequality through different combinations of subjective expectations and realizations [Pistaferri (2001), Kovacs et al (2019)]. Specifically, permanent shocks would be attributed to changes in expectations and transitory shocks to differences between realizations and expectations.…”

Section: Methodsmentioning

confidence: 99%

Volunteerism, Redistribution and Gender

Sessions

Zangelidis

2023

Preprint

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We explore whether, and to what extent, individuals respond to increased transitory or permanent inequality in regional income by offering more unpaid voluntary work. We find strong evidence that women, but not men, are more likely to supply such work, both at the extensive and intensive margin, if they live in areas that experience persistently high-income inequality. Our analysis suggests that women are intrinsically inequality averse and may regard voluntary work as a way of achieving a more equitable income distribution. JEL Classifications: D64, I30.

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“…The basis of this study is built around a complex network of ideas, models, concepts, and empirical research findings. Prominent among these are economic theories, including the life-cycle hypothesis, permanent income hypothesis, and relative income hypothesis (Kim, 2017;Kovacs et al, 2018). These ideas are based on the microeconomic theory of consumer choice and serve as a theoretical foundation for comprehending how individuals allocate and utilize their financial resources throughout their lifespans.…”

Section: Introductionmentioning

confidence: 99%

A Conjoint Analysis of Cooperative Savings Product Preferences Among Generation Z College Students in Davao City

Sumatra

2023

JISCOS

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Limited marketing hinders cooperatives' ability to attract and retain members, particularly younger generations like Generation Z. This study investigates the financial preferences of Gen Z students within the cooperative context, focusing on their preferred savings products. Using a conjoint analysis of 664 participants from three Davao City universities, this paper reveals insights into this demographic's financial decision-making processes. The data shows the paramount importance of promotion in influencing Gen Z's financial choices. Efficient social media campaigns emphasizing a positive and engaging cooperative identity significantly resonate with these young adults. While convenience, like proximity to public areas, is valued, it holds less weight compared to competitive interest rates and impactful promotional strategies. These findings offer actionable recommendations for cooperatives aiming to engage Gen Z. Aligning marketing strategies with their preferred channels and messages, tailoring product offerings to prioritize competitive rates and engaging social media presence, and fostering community engagement through educational partnerships are crucial steps toward success. The implications extend beyond Davao City, providing a framework for cooperatives in developing countries to effectively engage young adults. By understanding Gen Z's unique financial preferences and leveraging this knowledge to develop targeted marketing and product offerings, cooperatives can contribute to financial inclusion and position themselves as vital partners in building a financially empowered future for this generation. This study's multi-theoretical framework paves the way for future research and initiatives aimed at promoting financial literacy and community engagement programs tailored to resonate with Gen Z.

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Permanent versus Transitory Income Shocks over the Business Cycle

Cited by 4 publications

References 12 publications

Intergenerational Precautionary Savings in Europe*

Intergenerational Precautionary Savings in Europe*

Volunteerism, Redistribution and Gender

A Conjoint Analysis of Cooperative Savings Product Preferences Among Generation Z College Students in Davao City

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