We measure the extent of consumption insurance to income shocks accounting for high-order moments of the income … distribution. We derive a nonlinear consumption function, in which the extent of insurance varies with the sign and magnitude of … income shocks. Using PSID data, we estimate an asymmetric pass-through of bad versus good permanent shocks – 17% of a 3σ …

We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higherorder risk. We estimate our extended income process by GMM for household … data from the United States. We find countercyclical variance and procyclical skewness of persistent shocks. All shock …

We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household … data from the United States. We find countercyclical variance and procyclical skewness of persistent shocks. All shock …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of … repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

permanent income shocks we then study how cross-country differences in the wealth distribution and household income dynamics … households has little wealth, (ii) under larger transitory income shocks and (iii) when we consider households only using liquid …

shocks, but not to permanent shocks. The problem is that income shock components are not separately observable. I show how … permanent shock to income, thus providing a powerful test of the theory. The empirical analysis is performed on a sample of …According to the permanent income hypothesis with quadratic preferences, savings should react only to transitory income …

We reassess the empirical effect of income and employment on self-reported well-being. Our analysis makes use of a … suggested by the theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks … is rather associated with a decline in happiness. -- incomplete markets ; happiness ; income persistence …

We reassess the empirical effect of income and employment on self-reported well-being. Our analysis makes use of a … suggested by the theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks …

We reassess the empirical effects of income and employment on self-reported well-being. Our analysis makes use of a two … theory of incomplete markets, we differentiate between the effects of persistent and transitory income shocks. In line with …

household which experiences an exogenous shock of 10% of its total income changes both its food and total non …This paper examines the extent to which consumption in Russian households responds to exogenous income shocks. During … income. Using representative panel data on urban households from the Russian Longitudinal Monitoring Survey, I find that a …