-household income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired …

college education that mitigate this risk: (i) college students can quit without completing four-year degrees after learning …

We develop a macroeconomic model with physical and human capital, human capital risk, and limited contract enforcement …. We show analytically that young (high-return) households are the most exposed to human capital risk and are also the … least insured. We document this risk-insurance pattern in data on life-insurance drawn from the Survey of Consumer Finance …

risk of fatal hazards is fraught with problems. The theoretical basis for such estimates are flawed in a number of …

of the world, individuals acquire skill; however outside investors and individuals inefficiently share risk. We show that … economy enters an endogenous disaster state. We show that the possibility of these disaster states distorts risk prices, even …