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 … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

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 … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

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 is a semiparametric …

We study workers' idiosyncratic earnings risk over the life-cycle using a German administrative data set. Positive and … incomplete markets model. Moreover, age-varying risk implies a linear increase in consumption inequality late in working life …

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 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 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 …

transitory income (e.g., from a stimulus check) is higher under non-Gaussian earnings risk. … idiosyncratic risk implied by the benchmark process is between two-to-four times higher than the canonical Gaussian one. Third, the … standard method in the literature for measuring the pass-through of income shocks to consumption—can significantly overstate …

income risk affects equity ownership turnover. A portfolio choice model with an income process extracted from survey data … shows that idiosyncratic income shocks are more important for dynamic equity ownership decisions than aggregate stock market … risk. The model yields realistic estimates for the coefficient of relative risk aversion (= 3.09) and the discount factor …