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Subjective income expectations and risks in rural India

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  • Alok Kumar

Abstract

This paper analyses the pattern and determinants of income risk and expectation in rural India. It uses unique primary survey data eliciting subjective income distribution from households in twelve villages in Bihar. It finds that expected future income is significantly and positively associated with its variance. Current income is a significant predictor of expected future income and its variance.

Suggested Citation

  • Alok Kumar, 2017. "Subjective income expectations and risks in rural India," WIDER Working Paper Series wp-2017-165, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-165
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    More about this item

    Keywords

    Subjective income distribution; Expected income; Risk; Rural; India;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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