heterogeneity. Our model allows for four main social insurance programmes. In contrast to simpler models that attribute all income …

partial equilibrium under imperfect insurance. In this paper the assumption of i.i.d. income innovations used in previous … empirical studies is removed and the focus of the analysis placed on models for the conditional variance of income shocks, that … earnings determination that separate income shocks into idiosyncratic transitory and permanent components. We allow for …

heterogeneity. Our model allows for four main social insurance programmes. In contrast to simpler models that attribute all income …

choices over the life cycle. We start by analyzing the theoretical impact of income changes on consumption - highlighting the … contributions, distinguishing between papers that use only income data and those that use both income and consumption data. The … and identify the income process or the information set of the individuals. Second, one can assume that the income process …