uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also consider … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the …

aversion. An accompanying laboratory experiment confirms that an exogenous increase in income risk causally leads to this …This paper empirically examines the behavioral precautionary saving hypothesis that uncertainty about future income … empirically study the relation between income risk, experimentally elicited loss aversion, and precautionary savings. We do so …

Private consumption demand falls in response to increased unemployment risk during a recession, as households increase … unemployment risk is more important than realized unemployment shocks in accounting for durable expenditure dynamics during … recessions, while the opposite is true for nondurables. The importance of anticipation of future unemployment risk also means …