uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

Precautionary savings occurs in response to uncertainty regarding future income. The precautionary motive to delay …

Our estimates indicate that 24% of net wealth is attributed to precautionary savings in Australia. Moreover, across the … related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we …

theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …, experimentally elicited loss aversion and precautionary savings. We do so using a sample of 640 individuals from the low …

motive. Our findings suggest that the more risk averse individuals are those who hold less savings. When heterogeneous risk … indicators of risk aversion. The latter makes us possible to account for the fact that more risk averse individuals may select …

the time needed to reach adulthood. Also, the breadwinner's life-time uncertainty and the unfairness of the insurance …

This paper aims to fill the gaps in the analysis of risk‐sharing channels at the microlevel, both within and across … to quantify in a unified and consistent framework several risk‐sharing mechanisms that so far have been documented … both 2008-2010 and 2010-2012 spells. The most important smoothing mechanisms turn out to be self‐insurance through savings …

looking at the expenditure response of workers to the change in unemployment risk measured at the occupational level. We find … that occupational unemployment risk does not have a large impact on consumption expenditure. However, despite investigating … multiple forms of occupational unemployment risk for multiple expenditure categories in two expenditure surveys (PSID, CEX), we …

, during which time expected earnings are zero. We find that income uncertainty can alter savings patterns over the lifecycle …Several models of economic behavior currently compete for an explanation of individual wealth accumulation and savings …

theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …, experimentally elicited loss aversion and precautionary savings. We do so using a sample of 640 individuals from the low …