Perception of poverty. Individual, household and social enviromental determinants
This paper aims to show to what extent self-perception of poverty is affected by respondent/household socio-economic characteristics and by social capital endowment of household place of residence in order to disclose the primary risk factors of family poverty status. Such evidence would help central and local government to define those economic and social goals which should receive more attention by current policies with the purpose of advancing towards the eradication of poverty. In order to purse this aim the logit model has been applied to analyze answers to the dichotomous transformation of the following question taken from the 2008 Survey on Household Income and Wealth (SHIW) of the Bank of Italy CONSIDERING YOUR MONTHLY DISPOSABLE INCOME, IS YOUR HOUSEHOLD ABLE TO MAKE ENDS MEET: (1) WITH GREAT DIFFICULTY, (2) WITH DIFFICULTY, (3) WITH SOME DIFFICULTY, (4) WITHOUT DIFFICULTY, (5) WITH EASE, (6) WITH GREAT EASE? The results show a relevant effect on self-perception of poverty of both respondent /household socio-economic characteristics and social capital. In particular, the components social relationships and social engagement contribute to reduce the risk of a self-perceived poverty. Actually, networks characterized by relationships of trust are key determinants of human welfare as people socio-economic vulnerability is reduced as well as the resources they need only for the fact that they must deal with risk and avert major losses. Keywords: Self-perception of Poverty, Social Capital, Household Socio-Economic Characteristics, Policy-Makers
Italian household debt over the business cycle (1998-2004)
This paper aims to analyse the socio-economic profile of indebted Italian households and possible changes of such profile occurred in the recession period (2001-2004) with respect to that of expansion (1998 – 2000). In order to pursue this aim, Multiple Correspondence Analysis (MCA) has been applied to the Burt matrix obtained by merging the 1998 and 2000 Surveys on Household Income and Wealth (SHIW) of the Bank of Italy, that is the expansion phase surveys, and setting as supplementary individuals the rows of the Burt matrix obtained by merging the 2002 and 2004 surveys (SHIW) of the Bank of Italy, that is the recession phase surveys. Through this double merging, it has been possible to analyse jointly the surveys conducted in two different but homogeneous years as far as macroeconomic trends are concerned. The analysis of the above mentioned data has highlighted that, on the whole, the socio-economic profile of indebted Italian households has undergone, in the recession period with respect to that of expansion, noteworthy changes, partly due to the gradual transformation of instruments used in the payment of instalments on more favourable terms and partly due to the high uncertainty with regard to the general economic perspectives which characterize the recession period. Keywords: household debt, purchasing behaviour, business cycle, multiple correspondence analysis.
Italian household purchasing behaviour over the business cycle (1997-2004)
The key implication of the life cycle (LCH – Modigliani and Brumberg, 1954) and of the permanent income (PIH – Friedman, 1957) theories is that transitory variations in income, such as those arising from business cycle fluctuations, do not modify the purchasing behaviour of households which sustain, eventually, consumption either by running down assets and/or by incurring debt. Nevertheless, several empirical studies have shown that, due to capital market imperfections, during business cycle recession households, especially those with a severe overall economic situation, are, actually, forced to reduce the level of consumption of goods with more elastic demand. However, some questions still need an answer as far as Italian context is concerned: during the business cycle recession, do households modify their purchasing behaviour varying, apart from the expenditure level, the share of overall consumption devoted to each category of goods and services? That is, to what extent are household purchasing decisions concerning the share of overall consumption devoted to each category of goods and services consistent with the economic theories on the inter-temporal allocation of resources developed by Modigliani and Brumberg (1954) and by Friedman (1957)? With this objective in mind, it will be highlighted if and how much the composition of Italian household expenditures according to the COICOP divisions changed in the recession phase (2001-2004) with respect to that of expansion (1997-2000), applying, to the data from Italian Household Expenditure Surveys, the Correspondence Analysis for three-way tables (Escofier and Drouet, 1983).
Capitale sociale e processi produttivi locali: un’analisi a livello provinciale digital
How strong is the impact of social capital on the production process? What kind of relationship links social capital to traditional input factors, such as labour and physical capital? This paper attempts to answer to these questions at a macroeconomic level.