Responses of Time-use to Shocks in Wealth during the Great Recession
Shocks to income and wealth decrease the household's monetary budget available. As a consequence, households respond by decreasing consumption spending. Income shocks, such as unexpected unemployment and retirement, also increase the time-budget available in addition to decreasing the monetary...
Saved in:
Published in | IDEAS Working Paper Series from RePEc |
---|---|
Main Authors | , , |
Format | Paper |
Language | English |
Published |
St. Louis
Federal Reserve Bank of St. Louis
01.01.2014
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Abstract | Shocks to income and wealth decrease the household's monetary budget available. As a consequence, households respond by decreasing consumption spending. Income shocks, such as unexpected unemployment and retirement, also increase the time-budget available in addition to decreasing the monetary budget available. Some research has suggested that the additional time available enables households to substitute home production for purchased goods and services, effectively increasing their well-being beyond what a measure of spending would indicate. We aim to expand on this research by using data on time-use with data on categories of spending, which has the potential to be much more informative than data on time-use alone: the combination can show substitutions or complements of time for spending. We use wealth shocks in house values induced by the Great Recession to show the extent to which households adjusted home production in response to those wealth shocks. We found some adjustment in the population age 65 or older, but none in the population age 51-64. This implies that younger households experiencing a wealth shock only find very little opportunity, if any, to buffer the welfare losses resulting from reductions in spending on market-purchased goods by increases in home production. Older households were able to compensate modestly. |
---|---|
AbstractList | Shocks to income and wealth decrease the household's monetary budget available. As a consequence, households respond by decreasing consumption spending. Income shocks, such as unexpected unemployment and retirement, also increase the time-budget available in addition to decreasing the monetary budget available. Some research has suggested that the additional time available enables households to substitute home production for purchased goods and services, effectively increasing their well-being beyond what a measure of spending would indicate. We aim to expand on this research by using data on time-use with data on categories of spending, which has the potential to be much more informative than data on time-use alone: the combination can show substitutions or complements of time for spending. We use wealth shocks in house values induced by the Great Recession to show the extent to which households adjusted home production in response to those wealth shocks. We found some adjustment in the population age 65 or older, but none in the population age 51-64. This implies that younger households experiencing a wealth shock only find very little opportunity, if any, to buffer the welfare losses resulting from reductions in spending on market-purchased goods by increases in home production. Older households were able to compensate modestly. |
Author | Rohwedder, Susann Been, Jim Hurd, Michael |
Author_xml | – sequence: 1 givenname: Jim surname: Been fullname: Been, Jim – sequence: 2 givenname: Michael surname: Hurd fullname: Hurd, Michael – sequence: 3 givenname: Susann surname: Rohwedder fullname: Rohwedder, Susann |
BookMark | eNqNyjsOwjAQRVEXUPDbw0jUkYBIgGu-dYhEGUXhBRvCTPDY-4eCBVDd4tyxGbAwRmZfQHthhZK0VPoXsqSgKHRx0jyVPNMVdRcd3VLwfKfoQKeAOlKBBqpeeGqGbd0pZr9OzPx4KHfnrA_yTtBYPSQF_lK1XNvtxtp8tcj_uz59-TaR |
ContentType | Paper |
Copyright | Copyright FEDERAL RESERVE BANK OF ST LOUIS 2014 |
Copyright_xml | – notice: Copyright FEDERAL RESERVE BANK OF ST LOUIS 2014 |
DBID | 3V. 7WY 7WZ 7XB 87Z 8FK 8FL AAFGM ABLUL ABPUF ABSSA ABUWG ACIOU ADZZV AFKRA AGAJT AGSBL AJNOY AQTIP AZQEC BENPR BEZIV BOUDT CBHQV CCPQU DWQXO FRNLG F~G K60 K6~ L.- M0C PIMPY PQBIZ PQBZA PQCXX PQEST PQQKQ PQUKI PRINS Q9U |
DatabaseName | ProQuest Central (Corporate) ABI/INFORM Collection ABI/INFORM Global (PDF only) ProQuest Central (purchase pre-March 2016) ABI/INFORM Collection ProQuest Central (Alumni) (purchase pre-March 2016) ABI/INFORM Collection (Alumni Edition) ProQuest Central Korea - hybrid linking Business Premium Collection - hybrid linking ABI/INFORM Collection (Alumni) - hybrid linking ABI/INFORM Collection - hybrid linking ProQuest Central (Alumni) ABI/INFORM Global - hybrid linking ProQuest Central (Alumni) - hybrid linking ProQuest Central ProQuest Central Essentials - hybrid linking ABI/INFORM Global (Alumni) - hybrid linking Business Premium Collection (Alumni) - hybrid linking ProQuest Women's & Gender Studies - hybrid linking ProQuest Central Essentials ProQuest Central Business Premium Collection ProQuest One Business - hybrid linking ProQuest One Business (Alumni) - hybrid linking ProQuest One Community College ProQuest Central Business Premium Collection (Alumni) ABI/INFORM Global (Corporate) ProQuest Business Collection (Alumni Edition) ProQuest Business Collection ABI/INFORM Professional Advanced ABI/INFORM Global Publicly Available Content Database One Business ProQuest One Business (Alumni) ProQuest Central - hybrid linking ProQuest One Academic Eastern Edition (DO NOT USE) ProQuest One Academic ProQuest One Academic UKI Edition ProQuest Central China ProQuest Central Basic |
DatabaseTitle | Publicly Available Content Database Business Premium Collection ABI/INFORM Global (Corporate) ProQuest Business Collection (Alumni Edition) ProQuest One Business ABI/INFORM Global ABI/INFORM Global (Alumni Edition) ProQuest Central Basic ProQuest Central Essentials ProQuest One Academic Eastern Edition ProQuest Central (Alumni Edition) ProQuest One Community College ProQuest Business Collection ProQuest Central China ABI/INFORM Complete ProQuest Central ABI/INFORM Professional Advanced ProQuest One Academic UKI Edition ProQuest Central Korea ProQuest One Business (Alumni) ProQuest One Academic ABI/INFORM Complete (Alumni Edition) ProQuest Central (Alumni) Business Premium Collection (Alumni) |
DatabaseTitleList | Publicly Available Content Database |
Database_xml | – sequence: 1 dbid: BENPR name: ProQuest Central url: https://www.proquest.com/central sourceTypes: Aggregation Database |
DeliveryMethod | fulltext_linktorsrc |
ExternalDocumentID | 3757161561 |
Genre | Working Paper/Pre-Print |
GroupedDBID | 3V. 7WY 7XB 8FK 8FL ABUWG AFKRA AZQEC BENPR BEZIV CCPQU DWQXO FRNLG K60 K6~ L.- M0C PIMPY PQBIZ PQBZA PQEST PQQKQ PQUKI PRINS Q9U |
ID | FETCH-proquest_journals_16987993203 |
IEDL.DBID | BENPR |
IngestDate | Thu Oct 10 22:25:13 EDT 2024 |
IsOpenAccess | true |
IsPeerReviewed | false |
IsScholarly | false |
Language | English |
LinkModel | DirectLink |
MergedId | FETCHMERGED-proquest_journals_16987993203 |
OpenAccessLink | https://www.proquest.com/docview/1698799320?pq-origsite=%requestingapplication% |
PQID | 1698799320 |
PQPubID | 2036240 |
ParticipantIDs | proquest_journals_1698799320 |
PublicationCentury | 2000 |
PublicationDate | 20140101 |
PublicationDateYYYYMMDD | 2014-01-01 |
PublicationDate_xml | – month: 01 year: 2014 text: 20140101 day: 01 |
PublicationDecade | 2010 |
PublicationPlace | St. Louis |
PublicationPlace_xml | – name: St. Louis |
PublicationTitle | IDEAS Working Paper Series from RePEc |
PublicationYear | 2014 |
Publisher | Federal Reserve Bank of St. Louis |
Publisher_xml | – name: Federal Reserve Bank of St. Louis |
Score | 2.9247804 |
Snippet | Shocks to income and wealth decrease the household's monetary budget available. As a consequence, households respond by decreasing consumption spending. Income... |
SourceID | proquest |
SourceType | Aggregation Database |
SubjectTerms | Budgets Great Recession Households |
Title | Responses of Time-use to Shocks in Wealth during the Great Recession |
URI | https://www.proquest.com/docview/1698799320 |
hasFullText | 1 |
inHoldings | 1 |
isFullTextHit | |
isPrint | |
link | http://utb.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwfV3PS8MwFH7oevGmqPhjjgd6DaZt2qyngW5jCI4xFXcbzfqKXta5dP-_L22GB2HnQPII4fu-9ysP4CEO81jKIhea2VaoSKfCJCoWRuu-YT5fZeQyuq_TdPKhXhbJwgfcrC-r3GNiA9RFtXIx8scwZe-YyTSSg82PcFOjXHbVj9A4hiAKlUvTBk-j6Wz-D1gbthifQjDLN7Q9gyNan8Nw3pahksWqRNdyIXaWsK7w7YvByOL3Gj-bKixsewaRNRk2rjuyqGv_zbiA-_Ho_Xki9gcu_SOwyz-T40vosDdPV4As50uWNYqSjKk_K02hI0mZLBIqdT-la-ge2unm8PItnDCjqzZG0IVOvd3RHbNmbXr-an4BuqR2cQ |
link.rule.ids | 786,790,21416,33777,43838 |
linkProvider | ProQuest |
linkToHtml | http://utb.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwfV1LS8NAEB40OeitouKj6oBeF7d5bXIqqC1R21Bqxd5C0kywl6Y26f93NknxIPS8sLssy_d98wZ4sHuJLWWWCMVsKxxLeSJ1HVukSvkp8_kiIB3RHUde-Om8zd1563Ar27TKHSbWQJ0VC-0jf-x5bB0zmVqyv_4RemqUjq62IzQOwdQtN30DzKdBNJn-A9aaLYYdMCfJmjYncECrU3iZNmmoVGKRoy65ENuSsCrw45vBqMTlCr_qLCxsagaRNRnWpjuyqGv6ZpzB_XAwew7F7sC4_QRl_Hdl-xwMtubpApDlfM6yxiE3YOoP8jRTlqRAZi7lyvfoErr7drrav3wHR-FsPIpHr9H7NRwzuzuNv6ALRrXZ0g0zaJXets_0C3ZAeWc |
openUrl | ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.atitle=Responses+of+Time-use+to+Shocks+in+Wealth+during+the+Great+Recession&rft.jtitle=IDEAS+Working+Paper+Series+from+RePEc&rft.au=Been%2C+Jim&rft.au=Hurd%2C+Michael&rft.au=Rohwedder%2C+Susann&rft.date=2014-01-01&rft.pub=Federal+Reserve+Bank+of+St.+Louis&rft.externalDocID=3757161561 |