Premium
How Do Families Manage Their Economic Hardship?
Author(s) -
Baek Eunyoung,
DeVaney Sharon A.
Publication year - 2010
Publication title -
family relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.772
H-Index - 87
eISSN - 1741-3729
pISSN - 0197-6664
DOI - 10.1111/j.1741-3729.2010.00608.x
Subject(s) - multinomial logistic regression , economics , actuarial science , logit , demographic economics , family income , business , public economics , economic growth , econometrics , machine learning , computer science
Using data from the 2007 Survey of Consumer Finances, this study examined how families manage their economic hardship. A conceptual model was developed based on risk management theory and the permanent income hypothesis. About half of families used credit and about a third used their own savings to make up the difference between income and spending. The results of multinomial logit analysis showed that families' use of management methods differed when they faced economic hardship, depending on their situation.