Evaluation of permanent and transitory shocks role in consumption and income dynamics in the Russian Federation

Pavel Koval () and Andrey Polbin
Additional contact information
Pavel Koval: Gaidar Institute, Moscow, Russian Federation

Applied Econometrics, 2020, vol. 57, 6-29

Abstract: In this paper we estimated the parameters of household consumption sensitivity to permanent and transitory income shocks, as well as the evolution of the shocks’ variance over time, using RLMS micro-data. Estimations were conducted for various types of income and consumption, as well as social groups. Large families, which are consist of more than five members, have a reduced sensitivity to permanent shock and an increased sensitivity to transitory one, comparing to small families. Households with a head over 60 show increased sensitivity to permanent income shocks. The reaction of urban population consumption is less for transitory shocks and greater for permanent one. Households with a high-educated head are less sensitive to permanent income shocks compared to those with a non-educated head.

Keywords: permanent shocks; transitory shocks; volatility; consumption; income; RLMS. (search for similar items in EconPapers)
JEL-codes: D10 E20 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://pe.cemi.rssi.ru/pe_2020_57_006-029.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:apltrx:0385

Access Statistics for this article

Applied Econometrics is currently edited by Anatoly Peresetsky

More articles in Applied Econometrics from Russian Presidential Academy of National Economy and Public Administration (RANEPA)
Bibliographic data for series maintained by Anatoly Peresetsky ().