shocks to the first and second moments of idiosyncratic risk on macroeconomic outcomes. An increase in demand uncertainty … productivity and demand shocks have distinct implications for the firms' output and price adjustments. Using panel data on prices … productivity and demand for the labor market and the dispersions of prices and labor productivity. We further analyze the impact of …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk …

scant attention is that immigrants, as consumers of the goods they help produce, contribute to their own demand. We examine … the effects of an immigration shock on labor demand by testing a general equilibrium model in which imperfectly … substitution of immigrants for natives; (ii) out-migration; and (iii) stimulation of labor demand. According to (iii), native wages …

is shown how the formal-informal mix depends on the distribution of ability, product demand and various parameter values …. The industry equilibrium is compared to one in which informality is prohibited. With relatively high product demand, the … profit is redistributed towards more able entrepreneurs. With relatively low product demand the opposite effects obtain. We …

the macroeconomic level, this can generate a lack of effective demand. With some qualifications, these findings carry over …