Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967448 | Journal of Monetary Economics | 2014 | 15 Pages |
Abstract
The monthly salaries and allowances of Korean government employees are known in advance but vary greatly throughout the year. Using a Korean monthly panel data set, the present study examines how nondurable consumption expenditures in households headed by government employees respond to predictable income changes. The study finds a moderate excess sensitivity in consumption that can be attributed to about 9% of the households. Further analysis shows that these 9% of the households have lower 'committed expenditures' and are likely inattentive consumers.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Shawn Ni, Youn Seol,