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Consumption dynamics of Latinos and Asians in the US

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  • Naguib, Costanza

Abstract

We document differences in the degree of partial insurance of consumption vs permanent income shocks between Caucasians, Latinos and Asians in the US. Caucasian and Asian individuals share a rather high degree of partial insurance, Asians being slightly more insured than the Caucasians. On the other hand, Latinos are the less insured group, with around 80% of a permanent income shock reverberating into their consumption.

Suggested Citation

  • Naguib, Costanza, 2022. "Consumption dynamics of Latinos and Asians in the US," Economics Letters, Elsevier, vol. 215(C).
    • Handle: RePEc:eee:ecolet:v:215:y:2022:i:c:s0165176522001550
    DOI: 10.1016/j.econlet.2022.110550
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    More about this item

    Keywords

    Consumption; Income; Partial insurance; Wealth;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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