Efforts to reconcile inconsistencies between theory and estimates of the income elasticity of the value of a … how exogenous income shocks, such as unexpected medical expenditures, may affect labor supply decisions which in turn … influence both the coefficient of relative risk aversion and the IEVSL. The presence of a consumption commitment, such as a home …

utility model. I derive a formula for the coefficient of relative risk aversion (g) in terms of (1) the ratio of the income …This paper shows that existing evidence on labor supply behavior places an upper bound on risk aversion in the expected …

This paper develops a method of estimating the coefficient of relative risk aversion (g) from data on labor supply. The … ratio of the income elasticity of labor supply to the wage elasticity, holding fixed the degree of complementarity between … stochastic. Using a large set of existing estimates of wage and income elasticities, I find a mean estimate of g = 1. I also give …

production. The distribution of the share of household income earned by the wife exhibits a sharp cliff at 0.5, which suggests …We examine causes and consequences of relative income within households. We establish that gender identity - in … participation, the wife's income conditional on working, marriage satisfaction, likelihood of divorce, and the division of home …

reacted to the increase in uncertainty about the future path of income that such an event produced. Our estimates are obtained …

frictions that allows us to distinguish between different sources of risk and to estimate their effects. The sources of risk are … heterogeneity. In contrast to simpler models that attribute all income fluctuations to shocks, our framework disentangles … variability due to shocks from variability due to the responses to these shocks. Estimates of productivity risk, once we control …

) welfare-neutral. Only a small part of measured income mobility is due to either welfare-reducing income risk or welfare …This paper presents a framework for the quantitative analysis of individual income dynamics, mobility and welfare, with … ex-ante identical individuals facing a stochastic income process and market incompleteness implying that they are unable …

This paper studies the cyclical nature of individual income risk using a confidential dataset from the U.S. Social … average earnings (which is not the case during expansions). Finally, we find that the cyclical nature of income risk is … individual income growth during recessions into "between-group" and "within-group" components. We begin with the behavior of …

accompanied by a substantial increase in income uncertainty. Interestingly, the permanent variance of household income remains … that rising income uncertainty and pension reforms can account for over half of the increase in the urban household savings …China's household saving rate has increased markedly since the mid-1990s and the age-savings profile has become U …

main cases. First, when couples are risk averse and pool income, joint search yields new opportunities--similar to on … studies, from a theoretical viewpoint, the joint job-search and location problem of a household formed by a couple (e ….g., husband and wife) who perfectly pools income. The objective of the exercise, very much in the spirit of standard search theory …