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The Impact of Economic Development on Asset Poverty: Evidence from Slovakia
Lancuchová, Petra ; Polák, Petr (advisor) ; Janský, Petr (referee)
This thesis deals with asset poverty and examines whether current economic development reduces the threat of households falling into asset poverty and whether the gap between poor and rich households is widening. For that pur- pose, we use data obtained from the Slovak HFSC survey, which took place in 2014. Economic development between 2014 and 2019 is simulated using macroeconomic indicators such as inflation, unemployment rate, and others. Besides the OLS method, which shows the effect of examined independent variables on the average value of household assets, we also employ quantile regression to compare the difference in the influence of independent variables on different values of assets. Regression results suggest that, indeed, recent economic development in Slovakia might reduce the risk of asset poverty; how- ever, this does not apply to all households. Economic development seems to be significant primarily for households with a higher value of assets, which may lead to a growing gap between wealthy and poor households. JEL Classification C13, D31, I32, O11 Keywords asset poverty, economic development, poverty measurements, wealth Title The Impact of Economic Development on Asset Poverty: Evidence from Slovakia
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Life Cycle and Asset Poverty
Lancuchová, Petra ; Želinský, Tomáš (advisor) ; Janotík, Tomáš (referee)
Poverty is generally defined as a lack of income to meet basic needs. The economic conditions of a household depend except from income also on assets of a household, and so on its real and financial asset holdings. The core of this thesis is to explore how asset holdings influence poverty over the life cycle. In last years, plenty of papers concerning this topic have been published and results of them are similar. This thesis builds on previous researches, but several modifications have been made. In our empirical research, we use the data gained from the Slovak HFCS survey conducted in 2014 to investigate how the asset position of individual or household evolves throughout the life. Besides ordinary least squares method that focuses on the impact of age for the average value of assets, we adopted the method of quantile regression to reveal the differences of age influence on different values of assets. By estimating five models in four variations we discovered that age is not always relevant when determining the values of household assets. The result indicate that age is of importance only from the certain age level. It was also found out that asset position of retired people is better than the asset position of younger people in cases where age significantly affects the given forms of assets.
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