theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals … uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also consider … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …

empirically study the relation between income risk, experimentally elicited loss aversion, and precautionary savings. We do so …This paper empirically examines the behavioral precautionary saving hypothesis that uncertainty about future income … subject to substantial income risk. In line with the theoretical predictions, we find that an increase in income risk is …

This paper aims to fill the gaps in the analysis of risk‐sharing channels at the microlevel, both within and across … to quantify in a unified and consistent framework several risk‐sharing mechanisms that so far have been documented … both 2008-2010 and 2010-2012 spells. The most important smoothing mechanisms turn out to be self‐insurance through savings …

Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction … generates saving dynamics such that the stationary distribution of wealth among households facing different risk levels is not …

Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export … regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …