condition derived herein, observable shocks are fully shared. The model, therefore, can generate the low degree of risk sharing …

Because of the restrictive assumptions required to establish the theory of Ricardian equivalence, its relevance in …

individual-pre-tax and household-post-tax earnings and across administrative (Social Security Administration) and survey (Panel … Study of Income Dynamics) data. We estimate two alternative processes for household after-tax earnings and study their … process also implies lower welfare costs of earnings risk …

risk. Economic theory suggests that when background risk rises, individuals will reduce their exposure to other risks. This … paper presents a test of this theory by examining the effect of medical expenditure risk on the willingness of elderly … Medicare beneficiaries to hold risky assets. We measure exposure to medical expenditure risk by whether an individual is …

To what extent does household inequality affect the response of aggregate consumption to aggregate real shocks? We … first review two state-of-the-art papers with household heterogeneity and aggregate uncertainty. They teach us that having a …

of information on household exposures to macroeconomic risk factors - can potentially lead to better macroeconomic … with information on the reallocation of resources within, from, and to the household sector in response to macroeconomic … events. The household sector is both a propagator of shocks to the economy, as wealth is redistributed across households with …

This paper examines the relationship between household balance sheets, consumer purchases, and expectations. We find … an explicit role for unemployment and for household debt. We find that the model is capable of explaining several …

Both textbook economics and common sense teach us that the value of household wealth should be related to consumer … in consumption. This paper provides evidence that a surprisingly small fraction of the variation in household net worth …