Krebs, Tom; Kuhn, Moritz; Wright, Mark L. J. - 2014
with the life insurance data, in equilibrium young households are borrowing constrained and under-insured against human … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life-insurance … holdings, financial wealth, earnings, and consumption inequality observed in the US data. Our analysis implies that a reform …