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

, especially for some subgroups. Household finance researchers must look beyond precautionary savings to understand how families … cope with risk. We also find evidence of a "pecking order" of coping methods in which savings appears to be first in the …

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 …

potential gains: (1) what is the likely effect of counter-cyclical policy on the nature of the income risk faced by individuals … effect of counter-cyclical policy is to directly reduce the income risk faced by each individual or is simply to reduce the … correlation across individuals in the income risk that they face. We present a model of the wage and employment risk faced by …

We estimate a structural model of household liquidity management in the presence of long-term mortgages. Households … accounts for the run-up in household debt and consumption boom prior to the financial crisis, their subsequent collapse, and …