Heathcote, Jonathan; Storesletten, Kjetil; Violante, … - In: American Economic Review 104 (2014) 7, pp. 2075-2126
We develop a model with partial insurance against idiosyncratic wage shocks to quantify risk sharing. Closed-form solutions are obtained for equilibrium allocations and for moments of the joint distribution of consumption, hours, and wages. We prove identification and demonstrate how labor...