The budget constraint requires that, eventually, consumption must adjust fully to any permanent shock to income …

The budget constraint requires that, eventually, consumption must adjust fully to any permanent shock to income …

income and consumption. It is shown that both the OECD and the non-OECD countries benefit from financial integration in terms … of consumption risk sharing and smoothing. The RE/PIH for the transitory income is not rejected for the OECD countries … suggesting full consumption smoothing. Regression results also support the RE/PIH prediction that financial integration delivers …

We show that countries that take on more international risk are rewarded with higher expected consumption growth …. International risk is defined as the beta of a country’s consumption growth with world consumption growth. High-beta countries hold … is negatively correlated with expected consumption growth. Therefore, uninsured shocks affect not only current growth …

We adopt a structural approach to studying the effects of public transfers on consumption smoothing, risk sharing and … preferences can reasonably well explain consumption dynamics and cross-sectional distributions. The calibrated model correctly … predicts the increase in consumption smoothing of transfers’ recipients, and the decrease in risk sharing between beneficiaries …

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

's desire to tilt, smooth and stabilize consumption as well as minimize portfolio risk. In this context we also show how the …

in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the …