Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that … model, helps to rationalize the limited participation of households in the stock market and their low holdings of risky … assets. Because households are subject to more background risk than previously considered, the estimated model implies a …

consumption, the precautionary saving channel and the investment-employment channel. Then, we use the household survey data (China … precautionary saving channel is more important in the urban household sample, while the investment-employment channel is more …Economic policy uncertainty is proven to have an important effect on household consumption. However, the literature on …