Consumption Volatility and Shock: A Heterogeneity Analysis Using Panel of Indian Households

Chakrabarty, Manisha and Swathysree, S.S (2023) Consumption Volatility and Shock: A Heterogeneity Analysis Using Panel of Indian Households. [Working papers (or Preprints)]

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We examine the ability of Indian households to absorb income shocks using household level consumption expenditure data between January 2016 and April 2022. We measure income volatility and evaluate the impact of income volatility on household welfare by estimating intertemporal consumption equation. We find that consumption volatility has increased significantly for lower income quantile, lower caste and Muslim households, the traditionally vulnerable population of India relative to others, indicating their inability to absorb income shocks. Their low levels of assets holdings and lack of access to credit could explain the substantially higher welfare loss they faced compared to others

Item Type: Working papers (or Preprints)
Keywords: Household Welfare | Income Volatility | Consumption Volatility | Liquidity Constraint
Subjects: Social Sciences and humanities > Business, Management and Accounting > Accounting
Social Sciences and humanities > Social Sciences > Social Sciences (General)
JGU School/Centre: Jindal Global Business School
Depositing User: Subhajit Bhattacharjee
Date Deposited: 02 Nov 2023 14:12
Last Modified: 02 Nov 2023 14:24
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