Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle/Permanent-Income … using a calibrated income process that matches the results in Feigenbaum and Li (2008). In that paper they measure income … uncertainty as the variance of income forecasting errors at different ages and over different time horizons. Here we show that …

disastrous income risk. We first empirically explore the relations among consumption changes, aggregate income, disaster shock … income risk to which the agent is exposed and her income recovery post disaster jointly affect the agent's optimal decisions …In this paper, we develop an analytically tractable dynamic model of optimal consumption and savings decisions with …

frictions render labor-market risk countercyclical and endogenous to monetary policy. Our main result is that a majority of …

the unconditional cross-sectional moments of household consumption growth and the moments of the risk free rate, equity … premium, price-dividend ratio, and aggregate dividend and consumption growth. The model-implied risk free rate and price …-dividend ratio are pro-cyclical while the market return has countercyclical mean and variance. Finally, household consumption risk …

of individual default risk may facilitate risk-taking. In equilibrium, credit-constrained borrowers may optimally choose …

This paper analyses how increased offshoring impacts on labor income risk. It is therefore distinct from a large number … variability of incomes. It provides an assessment that directly connects labor income risk and offshoring trends in a panel …. Permanent income risk is defined as variance of shocks to income that do not fade out over time. Contrary to transitory short …

We propose a novel approach to estimate household income uncertainty at various future horizons and characterize how … the estimated uncertainty evolves over the life cycle. We measure income uncertainty as the variance of linear forecast … errors conditional on information available to households prior to observing the realized income. This approach is …

This paper analyses how increased offshoring impacts on labor income risk. It is therefore distinct from a large number … variability of incomes. It provides an assessment that directly connects labor income risk and offshoring trends in a panel …. Permanent income risk is defined as variance of shocks to income that do not fade out over time. Contrary to transitory short …

This paper analyzes the impact increased offshoring has on labor income risk. It is therefore distinct from a large … second moments, i.e. the variance of incomes. It provides an assessment that directly connects labor income risk and …. Permanent income risk is defined as variance of shocks to income that do not fade out over time and are assumed to be not self …

This paper studies the nature of business cycle variation in individual earnings risk using a dataset from the U … cyclical nature of earnings risk is dramatically different for the top 1 percent compared with all other individuals -- even …