Fall In Income Research Articles

Managing Small Businesses During Recession

A recession is narrowing of an economic cycle and it is referred as slowdown of economic action. The macro economic factorsvaries during recessions. There will be a fall in production, employment, GDP, investment, capacity utilization, spending,household income, inflation and business fall. The rate of unemployment and bankruptcies rise during recession. Due to adversesupply shock there will be a drop in consumption and there will be a bursting of economic buddle. Even though owing businessorganizations is not without struggles, the rewards they earn often worth it. Every entrepreneur enjoy great freedom andflexibility in comparison with a regular employee. With a right kind of state of mind and proper understanding of hardship with areto be faced, a proper plan is required to tackle the ups and down in the journey of Entrepreneurship with respect of Small Scalesector. One of the biggest challenges faced by small firms is its difficulty to reach break even. It often takes 2 to 3 years for smallbusinesses to accomplish their goals. Especially during recession, small business organizations often hit the hardest. Reducedspending power, inadequate preparedness for recession, budget constraints etc., are making it impossible for small business toendure. The present article offers various suggestions for small businesses to manage during recession.

Solidarity and social behaviour: how did this help communities to manage COVID-19 pandemic?

PurposeDuring the coronavirus (COVID-19) pandemic lockdowns, stay at home or work from home, many have argued that the westernised non-pharmaceutical interventions (NPI) do not provide remedial in low-income countries like Nigeria, where informal job seekers, street traders, informal labourers and artisans depend mainly on the informal economy. By applying social solidarity (SS) and community-based approach (CBA), the authors evaluate individual acts (trust, altruism and reciprocity) during the lockdown and how these practices evolve from individual approaches to collective actions.Design/methodology/approachThis study reflects on pragmatism research paradigm that enables researchers to maintain both subjectivity in their reflections and objectivity in data collection and analysis. The authors adopt a qualitative method through purposeful and convenience sampling procedure. Data were analysed thematically to identify elements of SS, individual acts, collective or community actions and perceptions.FindingsThe findings reveal that COVID-19 had a disproportionate impact (lack of food and a fall in daily income) on workers, informal job seekers, informal businesses operators and the poor households. As such, the study developed a reflective model of solidarity exhibited by individual acts and collective acts (practices of resource pooling, information sharing, women empowerment, distribution of palliatives and donations) within trusted circles that helped people cope with the lockdown experiences.Practical implicationsSolidarity represents beliefs, practices of values and norms. The SS exhibited by people through NPI would have implications on planning and monitoring the effectiveness of public health programmes during a pandemic in the future.Social implicationsThe findings of citizens and community actions have implications related to the process of building communities – coming together – and solidarity that enhances social development with implications on community health policy agenda during disasters, emergencies and health pandemic.Originality/valueThis is one of the first studies to analyse the relationship between trust, altruism, reciprocity, SS and CBA during the COVID-19 pandemic. Also, it seems reasonable to clarify the concept of SS given the lack of clarity about the definitions from previous studies.

Income and Employment Changes Under COVID-19 Lockdown: A Study of Urban Punjab

This article traces income and employment changes through various phases of the lockdown based on primary data. It analyses the coping strategies of people in response to fall in their income. The article reveals that there was a large drop in income and employment with the announcement of lockdown. While there is some recovery with easing of the lockdown, the income at the time of survey is still substantially lower than its pre-lockdown level. Casual labour households with the largest fall in income and employment are the most affected. Income and employment losses are also higher among Scheduled Caste (SC) and Other Backward Caste (OBC) households. In the absence of any income, the households either had to live off their savings or had to borrow money for their basic needs. With rapidly depleting savings, borrowing approached its limits, and with slow recovery of income, households may need substantial government assistance to save them from deprivation.

A Revisit to COVID-19 Challenges and Responses: A Case Study of Kerala

Kerala, a state with high development indices distinguished with its Kerala Model of Development (UN, 1975), is also affected by recent Pandemic COVID'19 as other states and nations worldwide. The existing socio-economic analysis of the State reveals that the land reforms, promotion of education, and early introduction of participatory governance through Panchayati Raj Institutions (PRIs) have contributed to the State's socio-economic and political advancement. These factors played a significant role in the fight against the pandemic. This study is an attempt to answer what are the future economic and health challenges as the State, Kerala Model of Development, is faced with COVID'19? The specific objectives further guide this— to study the economic challenges ahead of the State as the tertiary sector is faced with challenges to contribute to the economy and attempted to study the possible ways to address health issues in the State. The researchers conducted an in-depth interview among 10 social scientists and economists of Kerala using purposive sampling to obtain primary data, which has been supported by secondary resources. The researchers did a thematic analysis of the primary data collected, further corroborated by secondary data. The study reveals that the State's current scenario during the pandemic, the grass-root empowerment in all spheres of life clubbed with administrative guidance, resulted in well-equipped public health care service delivery. The fall in the tertiary sector's income has decisively affected the State's economy, especially in agriculture, health, IT, tourism, labour, and foreign remittance. The State's economic and social equilibrium will face challenges in addressing issues in the post-COVID era. Even though the State suffered some increased Covid-19 cases recently, after expatriates' return, the dimensions mentioned above assisted the State in its fight against COVID'19. To address the challenges to the Kerala Model of Development, especially the post-COVID-19 requirements of the State demands interrogation, introspection, and integration of the current policies that majorly depend on the tertiary sector and initiate policies, plans, and programmes to strike a balance between all sectors, especially providing impetus to the primary sector so that a failure in one sector can be compensated by the other.

Las consecuencias económicas del coronavirus

Esta nota presenta reflexiones sobre los posibles impactos que la pandemia de coronavirus tendrá en la economía. La interrupción de las cadenas de producción, la caída de la producción y los ingresos son impactos inmediatos. Sin embargo, también se espera que los efectos a largo plazo sean signifi cativos y negativos parael crecimiento económico futuro.

An investigation of the characteristics, causes, and consequences of June 13, 2017, landslides in Rangamati District Bangladesh

The primary purpose of this study is to find out and discuss the characteristics, causes, and consequences of the landslides of June 13, 2017, in the Rangamati district Bangladesh. Since rainfall triggered the landslides, debris flow accounts for 40.45% of the landslides. Most of the landslides are small (mean 274. 2 m2 with a standard deviation of 546.1 m2). Size of 62.30% of the landslides was < 100 m2. The probability density of 50–100 m2 landslides is the highest and with the increase of the size of landslides, probability density decreases. It indicates the chance of large landslides (> 1000 m2) is low. Frequency ratio, logistic regression, and Spearman’s rank correlation were used to find out the relationship between 15 landslide causal factors including elevation, slope, rainfall, aspect, land use/land cover, land use/land cover change and distance to the road network with the occurrences and size of landslides. Among the land use/land cover types built-up areas [frequency ratio (FR) = 5.67], among land-use land-cover change types: vegetation to built-up (FR = 5.31) are the most prone areas to landslides. Logistic regression models found six causal factors were statistically significant, including slope (Coefficient, ß = 1.05), and distance to the road network (ß = 0.44). The size of the landslides had a significant relationship with five causal factors, including annual rainfall (ρ = 0.52), and elevation (ρ = 0.24). Paired sample t-test on pre-event and post-event monthly incomes revealed that landslides had a significant impact on different occupations of the local people. People involved in primary economic activities like the slash and burn agriculture (locally known as jhum cultivation) and fishing are the worst sufferers of landslides as they experienced a significant fall of income after the landslides. The findings of the study would help the policymakers to mitigate landslide hazards in the Rangamati district.

The distributional implications of asymmetric income dynamics

Income dynamics differ between groups of households defined by whether the head has university education or not and have changed asymmetrically in Great Britain since 2008. Using a heterogeneous agent incomplete markets model, we examine the quantitative implications of these differences for wealth inequality and for the distribution of conditional welfare losses. Within-group wealth inequality is higher for the non-university group and has increased since 2008 for both groups, while between-group inequality has also increased. Welfare losses are significantly higher for the non-university educated since 2008, and are driven by both a greater fall in mean income and a larger rise in income risk. Non-university educated households, which had initial wealth below the median and net labour income in the lower quintiles, suffered bigger losses. Social insurance policies beyond those currently in place can mitigate such welfare losses via tax and benefit redistributive mechanisms. For the broad majority of households, social insurance is valued more when it insures against the big adverse income shocks.

Impact of COVID-19 on Power Procurement Planning in Indian State of Andhra Pradesh

Andhra Pradesh power sector with an annual turnover of about Rs. 40,000 Cr is one of the sectors severely affected due to imposition of lockdown. Power, a seasonally varying industry, records its maximum sales during the summer. This summer being affected by COVID-19, power sector income is likely to be affected. Consumer category wise monthly sales data (domestic, commercial, industry, institutional and agriculture) available with distribution companies is a very valuable source of information to forecast the future sales as well as COVID impact on it. This paper obtained the sales data from Discoms and analysed the COVID impact on sales and income.It is found that there is 22% fall in daily demand since lock down. 11% or 6300 MU fall is expected in overall energy sales for 2020-21 due to covid - 24% in Q1, 10% Q2, 7% in Q3. A16% or Rs 4700 Cr fall in overall income 2020-21 is expected due to COVID - 38% in Q1, 15% Q2, 9% in Q3.COVID has affected the power sector at a time when there was a general trend of decline in energy consumption in subsidising sectors viz., industry and commercial. The recovery post COVID is going to become a challenge. A financial stimulus to the power sector to wipe out its debts, neutralise receivables from Government, and reforms in the sector bringing in mandatory competition at the retail level will be required to support the essential sector in the long run.

A Catastrophe for Capitalism

Given the utterly painful short-run chock of COVID-19 as well as the looming long-run threat of climate change, radical scholars suggest that the prevailing global economic system is flawed. Capitalism must be replaced by something else, but what? Klein discusses “Corona capitalism” and Chomsky dreams about an anarchistic economy. Piketty, Krugman and Stieglitz all call for major changes to American capitalism in particular. The fall in income will be dramatic for Western economies, but income constitutes the wealth of nations.

Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations

The house price in Hong Kong is well-known to be unaffordable. This paper argues that the commonly used house price-to-income ratio may be misleading in an economy with almost half of the population living in either public rental housing or subsidized ownership. Moreover, we re-focus on the relationships between economic fundamentals and the housing market of Hong Kong. While the aggregate GDP, population and longevity continue to grow, the real wage and household income fall behind. The trend component of the real GDP growth suffers a permanent downward shift after the first quarter of 1989 (a “political scar”). The trend component of real wage growth is close to zero, and the counterpart of real consumption and real investment decline steadily. Meanwhile, the trend component of the real housing rent and price display patterns that decouple from the macroeconomic variables. We also discuss the directions for future research.

Dialogue on the COVID-19 Pandemic Economic Crisis From Italy’s Frontline

COVID‐19 pandemic in Italy is accompanied by an epochal economic crisis. One wonders what the real extent of the economic crisis is, what its consequences in the medium and long term, what the governmental interventions mean and how effective economic policies, implemented and announced, are. These questions dominate the debates of the observers and commentators, and they also crowded the writer's mind during the cloistered hours all are forced. While politics and mass media discussed all this, in the small of the A., old and recent students, some already established professionals, urged the A. with messages and e‐mails to take position and to communicate to them what his thought was. The result has been a dialogue and some reflections that today is submitted to readers. These reflections are proposed just as they were born, in the form of dialogue with students, inspired in this by the illustrious precedent of Dialogue over the two greatest systems of the world (1632) by Galileo Galilei. The A. is aware that, at some point, his considerations, like those of the illustrious scholar could appear like heresies, compared to the current consensus. For these aspects, three points are worth to be evidenced. The first point is the extent of the crisis which is here quantified as a loss of GDP between a minimum of 11% and a maximum of about 18%, contrary to the 6% of GDP forecasted by quoted international forecasting centers. The second point is the proposal of prosecution by the ECB of monetary policy in the form of Helicopter Money as the policy necessary to contrast the fall of individual incomes and expenditures. The third point is the activation by EU of a “European partnership policy” to save industry and firms from a liquidity crisis. The paper maintains the original format of a question from a hypothetical interlocutor, followed by the answer that exposes the A. thoughts on the topic.

Impact of COVID-19 Pandemic on Financial Health and Food Security: a Survey-Based Analysis

This study investigated the impact of COVID-19 pandemic on the health, food security and financial lives of Nigerian households. The data for the study were collected using a questionnaire for 813 households from the six geo-political zones in Nigeria and the results were analysed using descriptive statistics and ordinal logistic regression model. The findings showed that the COVID-19 pandemic has affected households’ personal savings significantly. Majority of the households’ healthcare financing is borne out of their personal income and savings in the absence of a health insurance scheme. Households experiencing worse financial status largely do not have food during the pandemic. Many households have a positive expectation that they will recover from the unfavourable financial condition they are currently experiencing and there is a strong traditional support system existing in the localities during the study period. Food insecurity during the pandemic was significantly occasioned by increases in prices, fall in income and adverse financial well-being. The study thus suggested, among others, the need to urgently enhance the economic and financial well-being of the Nigerian populace to guide against the worsening and devastating impact of the COVID-19 pandemic on food security in Nigerian households.

ПЕРСПЕКТИВЫ РАЗВИТИЯ КОБРЕНДИНГОВЫХ ТЕХНОЛОГИЙ В ИНДУСТРИИ МОДЫ

The article is devoted to the analysis of modern trends in the development of brand collaboration in the fashion industry. Currently, the fashion industry is not going through the best of times because of the inability to create something revolutionary fashion. It seems that everything has already been invented, so famous brands are desperately looking for novelty. The production of products in South-East Asia reduces the cost of goods in the fashion industry, leads to the "democratization of luxury" and to the rapid obsolescence of things in the wardrobe [1; 19]. Luxury brands are losing touch with the consumer. Changing market conditions and the democratization of consumption lead to the need to look for new approaches to ensure the competitiveness of brands. When developing branding, companies primarily investigate real and hidden needs, stereotypes, and psychological attitudes. Currently, the opposition to "fast fashion" is customizing, i.e. redrawing old things that were in use. In addition, the "sustainable fashion" movement is expanding its influence, which opposes mindless consumption with a rational wardrobe and a careful attitude to the environment, as well as the production of durable clothing from renewable raw materialsA drop in the population's effective demand and a decrease in consumer brand commitment makes the situation worse. The fall in real incomes of the population in Russia is the transition from shopping middle segment the mass market and of mass in the segment and discounted used things. When developing branding, companies primarily investigate real and hidden needs, stereotypes, and psychological attitudes. Young people have always been indicators of fashion trends, and youth subcultures have always been a source of inspiration for designers. Currently, these are young people who do not part with gadgets, who possess IT technologies, active bloggers, who are always open to active use of any innovations, including in the field of fashion industry. Along with the close cooperation of famous brands with the sphere of art, quoting the works of famous artists, active involvement of famous personalities in the promotion of their fashion product, brands actively cooperate with each other. The most perspective direction for the development of co-branded technologies in the fashion industry is the FashionTech that connects the fashion industry and technology

Experience of Domestic Enterprises in the Conditions of Quarantine Restrictions: Social and Labor Aspects

The system of social and labor relations proved to be the most vulnerable to the impact of the financial and economic crisis and the Covid-19 coronavirus pandemic, and most of all suffered from measures aimed at overcoming the spread of coronavirus disease. The experience of domestic enterprises in the conditions of quarantine restrictions was investigated in the article. The most common personnel decisions during quarantine, including transfer to part-time employment, remote work, vacation, dismissal, were analyzed. Their impact on the national labor market was analyzed. The main negative trends in the system of social and labor relations due to the economic recession and quarantine restrictions on economic activity during the Covid-19 pandemic were identified. The volumes and levels of official and hidden unemployment were determined, their comparative analysis was carried out on the basis of statistical data and the results of sociological surveys. The uneven nature of hidden unemployment by type of economic activity was determined. The loss of working time for the second quarter of 2020 as a result of the introduction of strict quarantine restrictions was calculated. The imbalance between labor supply and demand, changes in attitudes and behavior of participants in the labor market, which act as an indicator of crisis processes in the field of employment, were characterized. The reasons for the decline in job search indices, declining labor supply, imbalance and weak labor market flexibility in the short term have been identified. The main trends and patterns of the labor market, changes in employers’ requirements for job applicants were described. The decline in incomes of the working population, the change in their structure due to the reduction of wages in the fall of sales and income of enterprises was studied. It is emphasized that the methodology of data collection by the State Statistics Service and the State Employment Service does not provide the opportunity to obtain complete operational information and under these conditions for rapid assessment and analysis of the situation it is necessary to use additional information from state and non-state online resources, sociological surveys and others sources.

Why Is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations

The house price in Hong Kong is well-known to be unaffordable. This paper argues that the commonly used house price-to-income ratio may be misleading in an economy with almost half of the population living in either public rental housing or subsidized ownership. Moreover, we re-focus on the relationships between economic fundamentals and the housing market of Hong Kong. While the aggregate GDP, population, longevity continues to grow, the real wage and household income fall behind. The trend component of the real GDP growth suffers a permanent downward shift after the first quarter of 1989 (a “political scar”). The trend component of real wage growth is close to zero, and the counterpart of real consumption and real investment decline steadily. Meanwhile, the trend component of the real housing rent and price display patterns that decouple from the macroeconomic variables. We also discuss the directions for future research.

Why Is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations

The house price in Hong Kong is well-known to be unaffordable. This paper argues that the commonly used house price-to-income ratio may be misleading in an economy with almost half of the population living in either public rental housing or subsidized ownership. Moreover, we re-focus on the relationships between economic fundamentals and the housing market of Hong Kong. While the aggregate GDP, population and longevity continue to grow, the real wage and household income fall behind. The trend component of the real GDP growth suffers a permanent downward shift after the first quarter of 1989 (a “political scar”). The trend component of real wage growth is close to zero, and the counterpart of real consumption and real investment decline steadily. Meanwhile, the trend component of the real housing rent and price display patterns that decouple from the macroeconomic variables. We also discuss the directions for future research.

Identification of trends in the decline in US income over the past five decades

The aim of the work is to test the well-known prediction of Karl Marx about the tendency to reduce the income of the proletariat under capitalism. The United States has been selected as the object of study as an advanced capitalist country with a relatively weakly developed public sector of the economy compared to other advanced capitalist countries and relatively small social transfers. In this work, by income reduction, we mean a massive phenomenon, involving at least 10% of the population and lasting for at least 10 years. The cyclical nature of the capitalist economy leads to sharp fluctuations in the income of the population, because of which problems arise during data processing: the downward trends can only be detected at sufficiently large intervals of time. Considering this, as research methods were the study of the largest possible amount of heterogeneous data. Direct data on the income of various statistical units, adopted in American statistics families, households, individuals, persons, direct data on wages, as well as indirect data on quality of life – long-term changes in average people height, life expectancy, specific number of prisoners were reviewed in this paper. All studied sources confirm the assumption of a long-term (approximately since 1969) decrease in the income of the majority (&gt; 50%) or at least a significant proportion of the US population. All data presented in the article are the estimates below. In fact, the share of the population subject to a decrease in income is higher, and the depth of the fall in income is greater. The consumer price indices, used in the processing of data do not take into account the greater susceptibility of income of the poor to the influence of inflation; the indices do not take into account the hidden increase in prices for the goods associated with the deterioration of their quality. Externalities, connected with the economic growth are not considered, the poor primarily affect the influence of which. It is shown that the decline in income is deep enough to have negative physiological consequences – the growth of at least 50% of the population is reduced, the life expectancy of at least 15 ... 30% (depending on the source) of the population falls. It is noted that the physiological consequences of a decrease in income have a gender asymmetry – reducing the average median body height and a decrease in life expectancy is more pronounced for women than for men, despite the trend of equalization of incomes/wages for men and women. The decline in income is deep enough to have negative social consequences: in 1969, it led to a transition from a stable number of prisoners for decades to exponential growth; peak values of the specific number of prisoners in the 2000s are seven times higher than the level of 1969. As a reason for the decline in income, the hypothesis about the impact of rising US immigration was presented and rejected.

The consumption–investment decision of a prospect theory household: A two-period model with an endogenous second period reference level

In this paper we analyze the two-period consumption–investment decision of a household with prospect theory preferences and an endogenous second period reference level which captures habit persistence in consumption and in the current consumption reference level. In particular, we examine three types of household depending on how the household’s current consumption reference level relates to a given threshold which is equal to the average discounted endowment income. The first type of household has a relatively low reference level (less ambitious household) and can avoid relative consumption losses in both periods. The second type of household (balanced household) always consumes exactly its reference levels. The third type of household has a relatively high reference level (more ambitious household) and cannot avoid to incur relative consumption losses, either now or in the future. Note that these households may act very differently from one another and thus there will often be a diversity of behavior. For all three types we examine how the household reacts to changes in: income (e.g., income fall caused by recession or taxation of endowment income), persistence to consumption, the first period reference level and the degree of loss aversion. Among others we find that the household increases its exposure to risky assets in good economic times if it is less ambitious and in bad economic times if it is more ambitious. We also find that in some cases more income can lead to less happiness. In addition, the less ambitious household and the more ambitious household with a higher time preference will be less happy with a rising persistence in consumption while the more ambitious household with a lower time preference will be happier if it sticks more to its consumption habits. Finally, the household’s happiness decreases with an increasing consumption reference level and thus not comparing at all will lead to the highest level of happiness. In addition, the sensitivity of happiness with respect to the reference level gets larger the closer the household moves to the threshold level, and it is smaller for less ambitious households than for more ambitious households due to loss aversion.

PENGARUH JAM KERJA DAN PENGALAMAN KERJA TERHADAP PENDAPATAN FOTOGRAFER PADA OBYEK WISATA TANAH LOT KECAMATAN KEDIRI KABUPATEN TABANAN

Bali as an agricultural area with most of the population works as farmers, but along with the development of tourism, the population starts working in the tourism sector. Since the beginning of its development, tourism in Bali has been declared a cultural tourism imbued with Hinduism. One of the tourist attraction areas in Bali which is famous for the development of cultural tourism is the Tanah Lot area, located in Tabanan Regency. The purpose of this study is to determine the effect of working hours and work experience on the income of photographers in the Tanah Lot Tourism Object Area. The number of samples taken is 55 respondents. The analysis technique used is multiple linear regressions. Simultaneous analysis results show that the variable hours of work and work experience significantly influence the income of photographers in the Tanah Lot Tourism Object Area. While the partial analysis results, variable hours of work and work experience significantly affect the income of photographers in the Tanah Lot Tourism Object Area. R Square = 0.856 which means 85.6 percent of the influence of the rise and fall of the photographer's income in the Tanah Lot Tourism Object Area is influenced by working hours and work experience, the remaining 14.4 percent is influenced by other variables not explained in this model.

Sanctions and Taxes

Are sanctions the most efficient means for convincing a nation to stop threatening security? We incorporate sanctions in a Robert Kohn trade model, likening security threats to global pollutants. Results suggest that Pigouvian taxes may contain the threats more efficiently than sanctions can. Econometric models of North Korea imply that comprehensive sanctions might reduce the number of arms tests. On the back of an envelope, we estimate that an income fall equivalent to about 7% of 2014 GDP might have eliminated all testing in 2015, controlling for the head of regime. But the result is not robust across all models.