This paper analyzes the welfare costs of business cycles when workers face uninsurable idiosyncratic labor income risk …. In accordance with the previous literature, this paper decomposes labor income risk into an aggregate and an … income risk. Using the multi-dimensional approach to idiosyncratic risk, this paper provides a general characterization of …

This paper analyzes a class of stochastic endogenous growth models with uninsurable idiosyncratic income risk. The … individual income process that displays realistic variations in idiosyncratic income risk. The calibrated model economy generates …

This paper studies empirically the relationship between trade policy and individual income risk faced by workers. The … analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk … parameters in various manufacturing sectors. The estimated income risk parameters and data on trade barriers are then used to …

debt on overall. Moreover, we find that endogenizing household's borrowing constraints by assuming limited commitment leads …

extended model with an infinite horizon, idiosyncratic risk and more realistic assumptions is used to demonstrate the general …

account surpluses in the emerging markets if they face higher risk than the US itself. But, with pronounced Loss Aversion in …

households with children are under-insured against the risk that an adult member of the household dies. We develop a tractable … macroeconomic model with human capital risk, age-dependent returns to human capital investment, and endogenous borrowing constraints … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life …