Uncertainty about the timing of retirement is a major financial risk with implications for decision making and welfare … retirement dates ranges from 4.28 to 6.92 years. We develop a quantitative model to assess the impact of this risk. Individuals … would give up 2.6%-5.7% of total lifetime consumption to fully insure this risk and 1.9%-4.0% of lifetime consumption simply …

In this paper we study the neoclassical growth model with idiosyncratic income risk and aggregate risk in which risk … pay off depending on both idiosyncratic and aggregate risk, but limited commitment rules out that households sell these … conditions under which it has lower/higher risk premia than the corresponding representative agent version of the model …

of the fungibility principle, excess discounting of future income, and large risk aversion. Methodologically, I develop a …

We propose a new method to test for efficient risk pooling that allows for intertemporal smoothing, non …-homothetic consumption, and heterogeneous risk and time preferences. The method is composed of three steps. The first one allows for … precautionary savings by the aggregate risk pooling group. The second utilizes the inverse Engel curve to estimate good …

role of secondary markets in providing opportunities for redistributing risk is made transparent and the modifications …