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Revisiting Consumption Smoothing and the 1998 Russian Crisis

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  • Christopher Gerry

    (UCL School of Slavonic and East European Studies)

  • Carmen A. Li

    (Department of Economics, University of Essex)

Abstract

Applying quantile regression techniques to Russian data we investigate the channels through which individuals experience changes in their well being. We find that married individuals in non-rural households with university-educated heads are less vulnerable to severe welfare shocks. For the most vulnerable individuals the labour market plays a key role in transmitting the effects of aggregate shocks through the unemployment channel whereas those individuals able to maintain their employment status are more able to cope with economic shocks. While increases in pension payments help individuals to cope with shocks, it transpires that vulnerable individuals rely more broadly on the support of relatives and the produce of their garden plots and dachas.

Suggested Citation

  • Christopher Gerry & Carmen A. Li, 2004. "Revisiting Consumption Smoothing and the 1998 Russian Crisis," UCL SSEES Economics and Business working paper series 43, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:43
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    References listed on IDEAS

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    1. Emmanuel Skoufias, 2003. "Consumption smoothing in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 67-91, March.
    2. Emmanuel Skoufias, 2003. "Consumption smoothing in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(1), pages 67-91, March.
    3. Ethan Ligon & Laura Schechter, 2003. "Measuring Vulnerability," Economic Journal, Royal Economic Society, vol. 113(486), pages 95-102, March.
    4. Michael Lokshin & Martin Ravallion, 2000. "Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 269-295, July.
    5. Simon Clarke, 2002. "Making Ends Meet in Contemporary Russia," Books, Edward Elgar Publishing, number 1951.
    6. Stefan Dercon & Pramila Krishnan, 2003. "Risk Sharing and Public Transfers," Economic Journal, Royal Economic Society, vol. 113(486), pages 86-94, March.
    7. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
    8. Michael M. Lokshin & Ruslan Yemtsov, 2004. "Household Strategies of Coping with Shocks in Post‐crisis Russia," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 15-32, February.
    9. Seeth, Harm Tho & Chachnov, Sergei & Surinov, Alexander & Von Braun, Joachim, 1998. "Russian poverty: Muddling through economic transition with garden plots," World Development, Elsevier, vol. 26(9), pages 1611-1624, September.
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    Cited by:

    1. Violetta Parutis, 2006. "Construction of Home by Polish and Lithuanian Migrants in the UK," UCL SSEES Economics and Business working paper series 64, UCL School of Slavonic and East European Studies (SSEES).
    2. Kate Bishop, 2006. "Knowledge based entrepreneurship in the Czech Republic and Hungary: results from 4 case studies," UCL SSEES Economics and Business working paper series 71, UCL School of Slavonic and East European Studies (SSEES).
    3. Tullio Buccellato, 2007. "Convergence across Russian regions: a spatial econometrics approach," UCL SSEES Economics and Business working paper series 72, UCL School of Slavonic and East European Studies (SSEES).
    4. Vernikov, Andrei, 2007. "Corporate governance and control in Russian banks," MPRA Paper 10028, University Library of Munich, Germany.
    5. Slavo Radosevic, 2007. "Research and Development and Competitiveness in South Eastern Europe: Asset or Liability for EU Integration?," UCL SSEES Economics and Business working paper series 75, UCL School of Slavonic and East European Studies (SSEES).
    6. Slavo Radosevic, 2006. "Growth, Integration and Spillovers in the Central and East European Software Industry," UCL SSEES Economics and Business working paper series 69, UCL School of Slavonic and East European Studies (SSEES).
    7. Adam Sliwinski, 2006. "Ownership structure and development of Polish life insurance companies - evidence from 1991 to 2004," UCL SSEES Economics and Business working paper series 63, UCL School of Slavonic and East European Studies (SSEES).
    8. Slavo Radosevic & Marat Myrzakhmet, 2006. "Between vision and reality: promoting innovation through technoparks in Kazakhstan," UCL SSEES Economics and Business working paper series 66, UCL School of Slavonic and East European Studies (SSEES).
    9. Christopher J. Gerry & Eugene Nivorozhkin & John A. Rigg, 2008. "The great divide: 'ruralisation' of poverty in Russia," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(4), pages 593-607, July.

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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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