consumption data. Allowing for the existence of measurement error in micro income, durables, finite lifetimes of consumers, and …In this paper I study a model of life-cycle consumption in which individuals react optimally to their own income … react too little to aggregate income variation. Aggregate consumption will be excessively smooth. Since aggregate …

Stated survey measures of risk preferences are increasingly being used in the literature, and they have been compared … to revealed risk aversion primarily by means of experiments such as lottery choice tasks. In this paper, we investigate … educational choice, which involves the comparison of risky future income paths and therefore depends on risk and time preferences …

This paper tests whether the Ricardian Equivalence proposition holds in a life cycle consumption laboratory experiment … not hold in general. Our results suggest that taxation has a significant and strong impact on consumption choice. Over the … life cycle, a tax relief increases consumption on average by about 22% of the tax rebate. A tax increase causes consumption …

-cycle model of consumption and labor supply. Both permanent wage and hours shocks are important to explain earnings risk, but wage …We decompose permanent earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks … shocks have greater relevance. Progressive taxation strongly attenuates cross-sectional earnings risk, its life …

such anticipation-biases in a framework where consumers adapt to earlier consumption levels through a habit …

We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

as less risk-seeking. To understand the underlying causes and mechanisms, we propose a framework of how parental …

risk. This paper focuses on the transmission of sovereign risk to insurance companies as some of the largest institutional … effects from sovereign risk to domestic insurers. The impact on insurers is larger than for non-financial firms and slightly … on European data, we show that risks in sovereign bond portfolios are an important driver of insurer risk, which is not …