The Impact of Economic Development on Asset Poverty: Evidence from Slovakia
|Author:||Mgr. Petra Lancuchová|
|Year:||2020 - summer|
|Leaders:|| Mgr. Petr Polák MSc. Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||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 purpose, 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; however, 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.