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 … because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …

transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable lifecycle … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

The existing literature suggests that when the saving decision of two-earner households under risk is analysed …, standard assumptions suffice for precautionary saving to exist under increases in risk of the first and second orders, but not …

countries wealth affects life satisfaction more than income. In the countries for which consumption data are available (Britain … and Hungary), non-durable consumption expenditures also prove at least as important to happiness as income. Further …, results from panel regression fixed effects models indicate that changes in wealth, income and consumption all produce …

effects. We exploit the unique design of an aid program's experimental trial to identify its indirect effect on consumption …

This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more … the impacts both of risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch … university graduates provides evidence which supports this contention. It thereby raises the possibility that even risk …

This paper reconsiders the wide agreement that females are more risk averse than males providing a leap forward in its …