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Disagreement in Partners’ Reports of Financial Difficulty

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  • Robert Breunig

    ()

  • Deborah A. Cobb-Clark

    ()

  • Xiaodong Gong

    ()

  • Daniella Venn

Abstract

We use unique data in which both partners report about household finances to demonstrate that there is often disagreement about whether the household has experienced financial difficulty in the past year. Four alternative explanations for this disagreement are tested using the data. The results indicate that disagreement may be related to the severity of the underlying material hardship rather than to gender differences, information asymmetries, or individual (as opposed to household) views of financial difficulty. This implies that standard surveys which collect information about the household’s financial position from a representative individual may fail to completely characterize the nature of material hardship.

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Bibliographic Info

Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2005-453.

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Length: 36 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:acb:cbeeco:2005-453

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  1. Bergstrom, T.C., 1993. "A Survey of Theories of the Family," Papers 93-02, Michigan - Center for Research on Economic & Social Theory.
  2. Nolan, Brian & Whelan, Christopher T., 2011. "Poverty and Deprivation in Europe," OUP Catalogue, Oxford University Press, number 9780199588435, Octomber.
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  8. Dobbelsteen, S. & Kooreman, P., 1997. "Financial management, bargaining and efficiency within the household: An empirical analysis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377569, Tilburg University.
  9. Zagorsky, Jay L., 2003. "Husbands' and wives' view of the family finances," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(2), pages 127-146, May.
  10. Pahl, Jan, 1995. "His money, her money: Recent research on financial organisation in marriage," Journal of Economic Psychology, Elsevier, vol. 16(3), pages 361-376, September.
  11. Gianni La Cava & John Simon, 2003. "A Tale of Two Surveys: Household Debt and Financial Constraints in Australia," RBA Research Discussion Papers rdp2003-08, Reserve Bank of Australia.
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