--956) test if risk sharing across households is complete in the sense that household consumption moves one-for-one with aggregate … consumption. In their studies the source of income risk is idiosyncratic, and agents can share risk across the entire economy …. Using a sample of households from the Panel Study on Income Dynamics (PSID), we explore whether households share the risk …

This paper aims to fill the gaps in the analysis of risk‐sharing channels at the microlevel, both within and across … to quantify in a unified and consistent framework several risk‐sharing mechanisms that so far have been documented …/dissavings (40% and 47% in 2008-2010 and 2010-2012, respectively), and within‐household risk‐sharing (16% and 14%). Interestingly …

income risk matters substantially for consumption …