, when the fraction of qualified owners is smaller, or when risk aversion, volatility, or hedging demand are larger. Supply …

forward a notion of current account sustainability and compares the experience of three Latin American countries – Chile … sustainability indicators and discusses their usefulness in predicting external crises. …

consistent with the theory of precautionary saving and with decreasing prudence. Earnings uncertainty, however, explains only a …

Economic theory suggests that uninsurable income risk, health risk and the expectation of future borrowing constraints … absolute risk aversion and decreasing prudence, a household will reduce its exposure to avoidable risks when confronted with … proxies for income risk, health risk and borrowing constraints, we find evidence that each of these variables significantly …

that of its partners, its relative incentives to accumulate precautionary savings fall and this results in an equilibrium …

expectations permanent income hypothesis (REPIH). Risk aversion and the interest rate schedule interact such that agents choose not …

Recent models with liquidity constraints and impatience emphasize that consumers use savings to buffer income …

extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the … changes in risk to fluctuations in aggregate consumption and (d) the significant impact of incomplete markets on aggregate …