Does consumption respond to predicted increases in cash-hand availability?. Evidence from the Italian "severance pay"

Margherita Borella; Elsa Fornero; Mariacristina Rossi

doi:10.1016/j.econlet.2009.06.016

Does consumption respond to predicted increases in cash-hand availability?. Evidence from the Italian "severance pay"

Margherita Borella
, Elsa Fornero
, Mariacristina Rossi

Research output: Contribution to journal › Article › peer-review

Abstract

We examine whether Italian household consumption exhibits excess sensitivity to "severance pay", a sizable lump-sum that workers receive at job termination. We find no evidence of excess sensitivity of non-durable expenditure to this anticipated cash-in-hand change.

Original language	English
Pages (from-to)	127-129
Number of pages	3
Journal	Economics Letters
Volume	105
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2009.06.016
Publication status	Published - Oct 2009
Externally published	Yes

Keywords

Euler equation
Excess sensitivity
Life-cycle
Severance pay

Access to Document

10.1016/j.econlet.2009.06.016

Cite this

@article{55c56998dceb4702bf2286846b553cce,

title = "Does consumption respond to predicted increases in cash-hand availability?. Evidence from the Italian {"}severance pay{"}",

abstract = "We examine whether Italian household consumption exhibits excess sensitivity to {"}severance pay{"}, a sizable lump-sum that workers receive at job termination. We find no evidence of excess sensitivity of non-durable expenditure to this anticipated cash-in-hand change.",

keywords = "Euler equation, Excess sensitivity, Life-cycle, Severance pay",

author = "Margherita Borella and Elsa Fornero and Mariacristina Rossi",

year = "2009",

month = oct,

doi = "10.1016/j.econlet.2009.06.016",

language = "English",

volume = "105",

pages = "127--129",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier B.V.",

number = "1",

}

TY - JOUR

T1 - Does consumption respond to predicted increases in cash-hand availability?. Evidence from the Italian "severance pay"

AU - Borella, Margherita

AU - Fornero, Elsa

AU - Rossi, Mariacristina

PY - 2009/10

Y1 - 2009/10

N2 - We examine whether Italian household consumption exhibits excess sensitivity to "severance pay", a sizable lump-sum that workers receive at job termination. We find no evidence of excess sensitivity of non-durable expenditure to this anticipated cash-in-hand change.

AB - We examine whether Italian household consumption exhibits excess sensitivity to "severance pay", a sizable lump-sum that workers receive at job termination. We find no evidence of excess sensitivity of non-durable expenditure to this anticipated cash-in-hand change.

KW - Euler equation

KW - Excess sensitivity

KW - Life-cycle

KW - Severance pay

UR - https://www.scopus.com/pages/publications/69349092548

U2 - 10.1016/j.econlet.2009.06.016

DO - 10.1016/j.econlet.2009.06.016

M3 - Article

AN - SCOPUS:69349092548

SN - 0165-1765

VL - 105

SP - 127

EP - 129

JO - Economics Letters

JF - Economics Letters

IS - 1

ER -

Does consumption respond to predicted increases in cash-hand availability?. Evidence from the Italian "severance pay"

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this