OECD countries 1992-2007. We focus on risk sharing through savings, factor income flows, and capital gains. Risk sharing … through factor income and capital gains was close to zero before 1999 but has increased since then. Risk sharing from capital … gains, at about 6 percent, is higher than risk sharing from factor income flows for European Union countries and OECD …

facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of … optimal aggregate saving rate is independent of income risk. The optimal time-invariant tax on capital is increasing in income … that the optimal steady state saving rate is increasing in income risk if and only if the intertemporal elasticity of …

choices over the life cycle. We start by analyzing the theoretical impact of income changes on consumption - highlighting the … contributions, distinguishing between papers that use only income data and those that use both income and consumption data. The … and identify the income process or the information set of the individuals. Second, one can assume that the income process …

In this paper we argue that very high marginal labor income tax rates are an effective tool for social insurance even … when households have preferences with high labor supply elasticity, make dynamic savings decisions, and policies have … labor productivity risk, show that it has a wealth distribution that matches the data well, and then use it to characterize …

unconditional cross-sectional moments of household consumption growth and the moments of the risk-free rate, equity premium, price …-dividend ratio, and aggregate dividend and consumption growth. The model-implied risk-free rate and price-dividend ratio are … procyclical while the market return has countercyclical mean and variance. Finally, household consumption risk explains the cross …

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 …

.S. savings behavior. The restrictions imposed by general equilibrium theory play an important role in arriving at each of these …A striking feature of U.S. data on income and consumption is that inequality increases with age. Using both panel data … characteristics of idiosyncratic labor market risk. We find that uncertainty distributed throughout the working years accounts for 40 …

(and the coefficient of relative risk aversion) from regressions of consumption growth on uncertainty in consumption growth … imply estimates of prudence and risk aversion that are unrealistically low. Using numerical solutions to a fairly standard …

greater income uncertainty than others. We first derive an equation characterizing the theoretical relationship between wealth …