Brewer, Mike and Etheridge, Ben and O'Dea, Cormac (2017) 'Why are households that report the lowest incomes so well-off.' The Economic Journal, 127 (605). F24-F49. ISSN 0013-0133
|
Text
Brewer_et_al-2017-The_Economic_Journal.pdf - Published Version Available under License Creative Commons Attribution. Download (1MB) | Preview |
Abstract
We document that households in the UK with extremely low measured income tend to spend much more than those with merely moderately low income. This phenomenon is evident throughout three decades worth of microdata and across different employment states, levels of education and marital statuses. Of the likely explanations, we provide several arguments that discount over-reporting of expenditure and argue that under-reporting of income plays the major role. In particular, by using a dynamic model of consumption and saving, and paying special attention to poverty dynamics, we show that consumption smoothing cannot explain all the apparent dissaving.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | Consumption; Measuring living standards; Poverty |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Institute for Social and Economic Research Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Elements |
Depositing User: | Elements |
Date Deposited: | 14 Sep 2015 14:01 |
Last Modified: | 06 Jan 2022 13:41 |
URI: | http://repository.essex.ac.uk/id/eprint/14894 |
Actions (login required)
![]() |
View Item |