Changes in consumption and saving behavior before and after economic shocks: Evidence from Zimbabwe
Alwang, Jeffrey R.
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This study examines the effects of drought and macroeconomic changes on household consumption and savings behavior in Zimbabwe, using two nationally representative cross_sectional data sets that straddle a period of economic volatility. Specifically, the article (1) analyzes changes in consumption and saving behavior before and after economic shocks and (2) investigates the effectiveness of savings as a means of cushioning the impacts of covariate shocks.