Relaxing household liquidity constraints through social security

Catherine, Sylvain; Miller, Max; Sarin, Natasha

doi:10.1016/j.jpubeco.2020.104243

Cited by 17 publications

(4 citation statements)

References 23 publications

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“…They further conclude that the economic consequences associated with the COVID-19 such as, lay off, shutting down of the industries, unemployment and firm exits may have this feature. (Erceg, Ružojčić, and Galić 2020;Catherine, Miller, and Sarin 2020) presented a comprehensive review of the socio-economic review of COVID-19 pandemic where they divided the total economy in to three sectors, primary, secondary and tertiary. Primary sector included the industries involved in extraction of raw material such as agriculture, petroleum, and oil etc.…”

Section: Background Theorymentioning

confidence: 99%

Socioeconomic Impact of COVID-19 in MENA region and the Role of Islamic Finance

Hassan

Rabbani

Abdulla

2021

IJIEF

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This paper analyses the socio-economic impact of the noble Corona virus (COVID-19) on ‘Middle East and North Africa’ (MENA) region as well as the role and opportunities of Islamic finance post COVID-19. The findings show that pandemic has affected the MENA region massively like any other region in the world. Since around 69% of the word’s crude oil supply is from this region alone, this causes it to suffer from dual shocks of COVID-19 pandemic as well as the declining crude prices that is caused by shocks from both ends, negative supply shock and a negative demand shock. The 19 countries in MENA region include from some of the richest countries of the world such as, Qatar, Kuwait, and Saudi Arabia, to some of the most vulnerable, poor and war ridden countries like Yemen, Syria, and Morocco. To mitigate the adverse effects of the pandemic, we suggest some immediate actions that can be taken such as a public fund to support health system, financial support to individuals and SME’s, financial support to corporations in order to prevent job loss and layoff and assurance of liquidity in domestic markets to prevent liquidity crunch. Finally, the paper analyses the role of Islamic finance in the region in recovery post COVID-19 and show that Islamic finance can be utilized as an alternative financial system in providing the relief to the COVID-19 affected people and entrepren

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Section: Background Theorymentioning

confidence: 99%

Socioeconomic Impact of COVID-19 in MENA region and the Role of Islamic Finance

Hassan

Rabbani

Abdulla

2021

IJIEF

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“…This is relevant because households that suddenly see their income drop try to smooth their consumption by using available savings. However, even in developed countries, there is evidence of a lack of savings for household expenses over very long periods (Catherine et al, 2020). Therefore, a public policy of emergency closure that doesn't consider the labor context of each region could aggravate the effects in the informal sector.…”

Section: "Quédate En Casa (Si Puedes)": Empleo Informal Y Covid-19 En...mentioning

confidence: 99%

“Stay at home (if you can)”: informal employment and COVID-19 in Mexico

Cantú¹,

Villanueva²,

Luna³

2023

Finanz. polit. econ

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This paper explores the relationship between residential confinement to reduce the spread of the COVID-19 virus, seen as a public policy, and how it affects the informal labor sector, as well as the responseof individuals to the pandemic in the states of Mexico. Forming panels for various levels of informality applied to panel vector auto-regressive (PVAR) shows that staying at home as public policy becomes more effective as informality decreases. In addition, the response of individuals to an increase in the spread of the pande-mic depends on the level of informality: for states with lower rates of informality, individuals respond to a higher concentration of residential confinement. But for states with a higher level of informality, the evidence is not significant. The paper considers the role of informality in the development of an effective public policy.

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“…Economic theory predicts that access to retirement savings following an economic shock, such as the COVID-19-induced rapid slowdown of the economy, can help liquidity-constrained households to smooth consumption. For example, Catherine et al, (2020) calculate the current consumption that could be enabled by giving pandemic-affected US workers access to social security at actuarially fair rates. For Singapore’s mandatory DC plan, Agarwal et al (2020) found that access to some pension savings allowed liquidity constrained participants to better smooth consumption.…”

Section: Introductionmentioning

confidence: 99%