identify and quantify the importance of precautionary savings for wealth accumulation. Before the reform, SOE workers enjoyed … helps us estimate the importance of precautionary savings. In our estimation, we correct a self-selection bias in … savings contribute to about one-third of the wealth accumulations for SOE workers between 1995 and 2002. Precautionary savings …

A fixed-rate deposit insurance system provides a moral hazard for excessive risk taking and is not viable absent … turn, caused banks to- increase default risk through increases. in asset risk and reductions in capital. This hypothesis is …

probability of bank failure and the risk exposure of the deposit insurance fund. On the other hand, the utility … asset risk and can increase the probability of bank failure. ; In this paper, we show that this seeming inconsistency stems …

This paper uses household consumption data to investigate whether uninsurable idiosyncratic risk accounts for the … idiosyncratic income shocks. Following Mankiw (1986), the paper develops an equilibrium factor model in which risk premia depend on …

past gains and losses on investors’ risk aversion. The paper first presents a simple model examining how heterogeneous … changes in investors’ risk aversion affects portfolio decisions and stock prices. Second, the paper shows empirically that …