{"title":"Consumption Smoothing in Metropolis: Evidence from the Working-class Households in Prewar Tokyo","authors":"Kota Ogasawara","doi":"arxiv-2311.14320","DOIUrl":null,"url":null,"abstract":"I analyze the risk-coping behaviors among factory worker households in early\n20th-century Tokyo. I digitize a unique daily longitudinal survey dataset on\nhousehold budgets to examine the extent to which consumption is affected by\nidiosyncratic shocks. I find that while the households were so vulnerable that\nthe shocks impacted their consumption levels, the income elasticity for food\nconsumption is relatively low in the short-run perspective. The result from\nmechanism analysis suggests that credit purchases played a role in smoothing\nthe short-run food consumption. The event-study analysis using the adverse\nhealth shock as the idiosyncratic income shock confirms the robustness of the\nresults. I also find evidence that the misassignment of payday in data\naggregation results in a systematic attenuation bias due to measurement error.","PeriodicalId":501487,"journal":{"name":"arXiv - QuantFin - Economics","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"arXiv - QuantFin - Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/arxiv-2311.14320","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
I analyze the risk-coping behaviors among factory worker households in early
20th-century Tokyo. I digitize a unique daily longitudinal survey dataset on
household budgets to examine the extent to which consumption is affected by
idiosyncratic shocks. I find that while the households were so vulnerable that
the shocks impacted their consumption levels, the income elasticity for food
consumption is relatively low in the short-run perspective. The result from
mechanism analysis suggests that credit purchases played a role in smoothing
the short-run food consumption. The event-study analysis using the adverse
health shock as the idiosyncratic income shock confirms the robustness of the
results. I also find evidence that the misassignment of payday in data
aggregation results in a systematic attenuation bias due to measurement error.