.S. savings behavior. The restrictions imposed by general equilibrium theory play an important role in arriving at each of these … characteristics of idiosyncratic labor market risk. We find that uncertainty distributed throughout the working years accounts for 40 …

manage systematic mortality risks, namely self-insurance and risk transfer to purchasers of the annuity products. We … demonstrate that self-insurance leads to high loadings, so that households offered a choice would favor the risk transfer scheme …

pensions and savings, Social Security in the United States today does not enable most recipients to maintain their living …

extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the … changes in risk to fluctuations in aggregate consumption and (d) the significant impact of incomplete markets on aggregate …

income risk on savings and portfolio choice and finds that, when labor income risk is independent of stock market risk, a …This paper analyzes optimal portfolio decisions of long-horizon investors with undiversifiable labor income risk and … exogenous expected retirement and lifetime horizons. It shows that the fraction of savings optimally invested in stocks is …

This paper argues that precautionary savings against uncertain income comprise a large fraction of aggregate savings. A … precautionary savings comprises up to 56 percent of aggregate life cycle savings. The derived expression for n-period optimal … comparisons of savings patterns among occupational groups using the Consumer Expenditure Survey contradict the predictions of the …

usual relationship between risk and consumption. In particular, we present a model where the presence of plausible … adjustment costs can cause a mean-preserving increase in unemployment risk to lead to increased consumption. The predictions of … risk as their unemployment shocks are more highly correlated. Such couples spend more on owner-occupied housing than other …