standard method in the literature for measuring the pass-through of income shocks to consumption—can significantly overstate … transitory income (e.g., from a stimulus check) is higher under non-Gaussian earnings risk. …

persistence and variance of labor income shocks. We show that the statistical model is identified and estimate it using PSID data … consumption-savings behavior. The welfare cost of idiosyncratic risk implied by the age-dependent income process is 34 percent …

persistence and variance of labor income shocks. We show that the statistical model is identified and estimate it using PSID data … risk implied by the age-dependent income process is 32% lower compared to an AR(1) process without age profiles. This is …

the compensation paid. In particular, because the degree of risk aversion ought to decrease with income, people should …

This paper studies the cyclical nature of individual income risk using a confidential dataset from the U.S. Social … individual income growth during recessions into "between-group" and "within-group" components. We begin with the behavior of … within-group shocks. Contrary to past research, we do not find the variance of idiosyncratic income shocks to be …

This paper studies the cyclical nature of individual income risk using a confidential dataset from the U.S. Social … individual income growth during recessions into "between-group" and "within-group" components. We begin with the behavior of … within-group shocks. Contrary to past research, we do not find the variance of idiosyncratic income shocks to be …