uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …We consider a simple, two period, consumption-savings model with future income uncertainty that examines the interplay … present bias. We predict, and show empirically, that loss aversion reduces savings, and that those who are more loss averse …

suggested by theory. This evidence is robust to different model specifications and econometric techniques as well as to the …

We study optimal savings in continuous time with exogenous transitions between employment and unemployment as the only …

This paper establishes new evidence on the cyclical behaviour of household income risk in Great Britain and assesses … the role of social insurance policy in mitigating against this risk. We address these issues using the British Household …. We then estimate how income risk, measured by the variance and the skewness of the probability distribution of shocks to …

risk of workers, which mitigates their precautionary savings motive. Using a quantitative model analysis, we show that this … recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using …

, and motives through a FinTech application. Users increase their spending permanently, lower their savings rate, and … precautionary savings motives: Liquid users behave as if they faced strong precautionary savings motives even though no observables …