We use the Italian Survey of Household Income and Wealth, a rather unique dataset with a long time dimension of panel … contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk. The …

-agents model with two main ingredients: i) rare disasters; ii) heterogeneous beliefs. The model captures time-varying risk premia …

recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using … household survey data from Germany. Second, we build a New Keynesian model with incomplete asset markets and labor market … risk of workers, which mitigates their precautionary savings motive. Using a quantitative model analysis, we show that this …

Idiosyncratic labor risk is a prevalent phenomenon with important implications for individual choices. In labor market … research it is commonly assumed that agents have rational expectations and therefore correctly assess the risk they face in the …

wherin a state s representative individual may choose to marry in order to diversify his or her idiosyncratic income risk … undiversifiable risk becomes larger, and when a state s initial income and growth rate is lower. A test of the model s predictions …, using cross-sectional data for the 50 U.S. states, suggests that there is broad support for a risk sharing motive for …

boom yields consistently positive excess returns. This excess return compensates for the risk of high negative returns in … countries on risk aversion, and low (high) risk aversion currencies depreciate (appreciate) in times of global turmoil. …

idiosyncratic risk implied by the benchmark process is between two-to-four times higher than the canonical Gaussian one. Third, the … transitory income (e.g., from a stimulus check) is higher under non-Gaussian earnings risk. …

populated by a large number of long-lived, risk-averse households with homothetic preferences who can invest in risk … households less than half of human capital risk is insured and the welfare losses due to the lack of insurance range from 3 …