Brown, S. orcid.org/0000-0002-4853-9115, Ghosh, P., Pareek, B. et al. (1 more author) (2021) The protective role of saving : Bayesian analysis of British panel data. Journal of Empirical Finance, 63. pp. 57-72. ISSN 1879-1727
Abstract
We explore whether a protective role for savings against future financial hardship exists using household level panel data for a nationally representative sample of UK households. We jointly model the incidence and extent of financial problems, using a dynamic two-part approach allowing different data-generating processes for experiencing financial hardship and the extent of financial hardship experienced. Our results show that: (i) saving on a regular basis mitigates against the likelihood of experiencing, as well as the number of, future financial problems; (ii) state dependence in financial problems exists; (iii) interdependence exists between financial problems and housing costs, with higher housing costs associated with an increased probability of experiencing financial hardship.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier. This is an author produced version of a paper subsequently published in Journal of Empirical Finance. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Bayesian modelling; Financial hardship; Saving; Zero inflation |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 18 Jun 2021 07:27 |
Last Modified: | 10 Dec 2022 01:13 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.jempfin.2021.05.002 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:174988 |