This paper analyzes optimal linear taxes on labor income and savings in a standard two-period life-cycle model with … endogenous leisure demands in both periods and non-insurable income risks. Households are subject to skill shocks in both periods … more attractive for social insurance if a larger part of risk is realized in the first period of the life-cycle. Our …

Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export … regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation … of export shares from the most to the least productive incumbents. Greater skewness of the demand distribution and …

unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive … literature that, when there is (only) risk type uncertainty, the optimal GR contract with renewal price set at the actuarially …

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 … households would pay more attention to capital income risk if they have (i) lower initial wealth endowment, (ii) lower marginal …

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …Courts typically base compensation for loss of income in personal injury cases on either mean or median work income …. Yet, quantatively, mean and median incomes are typically very different. For example, in the US median income is 65 …

Labour income follows a deterministic growth trend and fluctuates between two values. Interest rates are drawn …

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

transitory income (e.g., from a stimulus check) is higher under non-Gaussian earnings risk. … idiosyncratic risk implied by the benchmark process is between two-to-four times higher than the canonical Gaussian one. Third, the … standard method in the literature for measuring the pass-through of income shocks to consumption—can significantly overstate …

may shrink. The demand for life insurance is positively related to the number, age differentials, living standards, and …

data. How these differences affect saving in theoretical models depends on the metric one uses for risk. For labor-income … risk, second-degree increases in risk require prudence to induce increased saving demand. However, prudence is not …How does risk affect saving? Empirical work typically examines the effects of detectible differences in risk within the …