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

in preference heterogeneity. It develops a model with both uninsurable idiosyncratic income risk and risk aversion … heterogeneity to quantify their effects on wealth inequality. The results show that with the available estimates of the risk …, the share of wealth held by the top 1% is still substantially underestimated. It is also shown that models without risk …

We study consumption-portfolio and asset pricing frameworks with recursive preferences and unspanned risk. We show that … with recursive preferences and unspanned risk. Our setting is not restricted to affine asset price dynamics. Numerical …

This paper examines the effects of changes in uncertainty of household income on the macroeconomy. Households face … substantial idiosyncratic income risk that is up to two orders of magnitude larger than total factor productivity uncertainty … constrained by the zero lower bound. Our results imply that household income uncertainty may be an important factor in explaining …

In fifteen European countries, China, and the US, stocks and business equity as a share of total household assets are … labor-income risk can explain much of this risk-taking pattern. Uncontrollable labor-income risk stresses middle …, middle-income households reduce (controllable) financial risk. Richer households, having less pressure, can afford more risk …

/dissavings (40% and 47% in 2008-2010 and 2010-2012, respectively), and within‐household risk‐sharing (16% and 14%). Interestingly …This paper aims to fill the gaps in the analysis of risk‐sharing channels at the microlevel, both within and across … households. Using data from the Bank of Italy's Survey on Household Income and Wealth covering the financial crisis, we are able …

We examine the household consumption response to fluctuations in income and uncertainty, exploiting a large panel …, both household-specific income uncertainty and local labor market uncertainty depress consumption spending. We also find … greater vulnerability to labor market risk by male-only headed households and those with relatively intensive levels of …