This paper assesses the quantitative importance of a number of sources of income risk for household welfare and … precautionary saving. To that end I construct a lifecycle consumption model in which household income is subject to shocks … associated with disability, health, unemployment, job changes, wages, work hours, and a residual component of household income. I …

There is a large literature showing that the self-employed underreport their income to tax authorities. In this paper …, we quantify the extent to which the self-employed also systematically underreport their income in U.S. household surveys …. To do so, we use the Engel curve describing the relationship between income and expenditures of wage and salary workers …