Carroll and Kimball (1996) show that the consumption function for an agent with time-separable, isoelastic preferences … always exists a distribution of income risk such that consumption function is not concave in wealth. I also derive suffi … cient conditions guaranteeing that the consumption function is concave if the agent has preferences for late resolution of …

Some consumption opportunities are both indivisible and only valuable in particular tates of nature. The existence of … 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, e.g. medical treatments, are both indivisible and only valuable in particular states of … nature. The existence of 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 …

how subjective uncertainty is related to consumption behavior. Using unique data from the Survey of Consumer Expectations … uncertainty. In the workhorse consumption-savings model, augmented with risk heterogeneity, MPCs decline with earnings uncertainty …

how subjective uncertainty is related to consumption behavior. Using unique data from the Survey of Consumer Expectations … uncertainty. In the workhorse consumption–savings model, augmented with risk heterogeneity, MPCs decline with earnings uncertainty …