-household income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired … of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri and … consumption, compared to the empirical estimates of 32% and 19%. Most of the consumption insurance against permanent male wage …

We propose several econometric measures of systemic risk to capture the interconnectedness among the monthly returns of … hedge funds, banks, brokers, and insurance companies based on principal components analysis and Granger-causality tests. We … find that all four sectors have become highly interrelated over the past decade, increasing the level of systemic risk in …

Federal Housing Administration (FHA) insurance has doubled over the past two years and is projected to redouble to $1 ….5 trillion over the next five. Despite clear signs of strain in the FHA's Mutual Mortgage Insurance Fund, a recent actuarial … review indicates that the FHA will not need any form of government support. We identify four risk factors that make such a …

channels of insurance? Third, how does idiosyncratic risk interact with aggregate risk? … the most important sources of individual risk and cross-sectional heterogeneity? Second, what are individuals' key …

because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the … form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity …-seeking behavior by firms. Firms with high liquidity risk are likely to use cash rather than credit lines for liquidity management …

least insured. We document this risk-insurance pattern in data on life-insurance drawn from the Survey of Consumer Finance …We develop a macroeconomic model with physical and human capital, human capital risk, and limited contract enforcement …. We show analytically that young (high-return) households are the most exposed to human capital risk and are also the …

We study aggregate lapsation risk in the life insurance sector. Using the regulatory reporting of historical lapse … risk factors that explain a large fraction of the common variation in lapse rates of the 30 largest life insurance … and valuation of life insurance contracts. Ignoring aggregate lapsation risk results in cross-subsidization across …