Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

significantly influence consumption dynamics. Our estimates of the indexes of relative risk aversion and relative prudence, as well … financial risks on consumption choices in the Mediterranean Region. The analysis is carried out using time series aggregate data …

such state-dependent indivisible consumption opportunities influences a person’s risk attitudes. In general, people are not … risk averse anymore even if utility from divisible consumption is concave. I propose a definition of insurance in the …Some consumption opportunities are both indivisible and only valuable in particular tates of nature. The existence of …