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The Dynamics of Market Insurance, Insurable Assets, and Wealth Accumulation

Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2002

in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the …

Persistent link: https://www.econbiz.de/10005822601

Hidden Insurance in a Moral Hazard Economy

Bertola, Giuseppe; Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2013

We consider an economy where individuals privately choose effort and trade competitively priced securities that pay off with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then standard functional form restrictions ensure that...

Persistent link: https://www.econbiz.de/10010722701

Redistributive Taxation and Personal Bankruptcy in US States

Grant, Charles; Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2005

Both personal bankruptcy and redistributive taxes can insure households’ consumption risk and both vary considerably … attractive both for the intratemporal insurance and for inter-temporal consumption smoothing. Exploiting data variation over time … bankruptcy exemptions are negatively correlated; (ii) both policies are associated with more equal consumption growth whereas the …

Persistent link: https://www.econbiz.de/10005822652

Income Risk and Household Debt with Endogenous Collateral Constraints

Hintermaier, Thomas; Koeniger, Winfried - Society for Computational Economics - SCE - 2006

We investigate possible determinants of the increase of household debt and smaller consumption fluctuations since the … the volatility of non-durable consumption. We then extend the model to unsecured debt, default and risk-sharing with …

Persistent link: https://www.econbiz.de/10005132601

Consumption Smoothing and the Structure of Labor and Credit Markets

Bertola, Giuseppe; Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2004

Smoother labor incomes alleviate credit constraints by reducing workers' desire to borrow, and prospects of upward income mobility have smaller beneficial effects for currently poor workers when borrowing constraints are binding. These simple theoretical insights are consistent with the...

Persistent link: https://www.econbiz.de/10005700925

Debt Portfolios

Hintermaier, Thomas; Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2011

We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the calibrated model matches important quantitative...

Persistent link: https://www.econbiz.de/10009003472

Public and Private Insurance with Costly Transactions

Bertola, Giuseppe; Koeniger, Winfried - Institute for the Study of Labor (IZA) - 2010

transactions, and can influence consumption allocation. We show that efficient transfer schemes should take into account the impact …

Persistent link: https://www.econbiz.de/10008678696