Disagreement in Partners’ Reports of Financial Difficulty
AbstractWe 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 or individual (as opposed to household) views of financial difficulty. We find only weak evidence that information asymmetries explain couple disagreement about 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 InfoPaper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 520.
Length: 21 pages
Date of creation: Apr 2006
Date of revision:
Household Finances; Survey Methodology; Material Hardship;
Other versions of this item:
- Breunig, Robert & Cobb-Clark, Deborah A. & Gong, Xiaodong & Venn, Danielle, 2005. "Disagreement in Partners' Reports of Financial Difficulty," IZA Discussion Papers 1624, Institute for the Study of Labor (IZA).
- Robert Breunig & Deborah A. Cobb-Clark & Xiaodong Gong & Daniella Venn, 2005. "Disagreement in Partners’ Reports of Financial Difficulty," ANU Working Papers in Economics and Econometrics 2005-453, Australian National University, College of Business and Economics, School of Economics.
- C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
- D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
This paper has been announced in the following NEP Reports:
- NEP-ACC-2006-05-27 (Accounting & Auditing)
- NEP-ALL-2006-05-27 (All new papers)
- NEP-FMK-2006-05-27 (Financial Markets)
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