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resilience as indicated by its high-risk exposure and vulnerability. The objective of this paper is to point to policymakers the …. Policymakers should be aware and conversant about risk analysis, risk management, and what policies can best respond to exogenous …
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between households' perceived exposure to uninsured risk, measured as past exposure to deviations in average rainfall levels … the depletion of assets. We also consider the interaction between past weather-risk exposure and the actual realization of … weather shocks to ascertain the extent to which the investment strategies of risk-exposed households "pay off" by buffering …
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The budget constraint requires that, eventually, consumption must adjust fully to any permanent shock to income. Intuition suggests that, knowing this, optimizing agents will fully adjust their spending immediately upon experiencing a permanent shock. However, this paper shows that if consumers...
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finds that common shocks – key crisis events as well as changes to global liquidity and risk – have exerted a large effect …, country risk and the strength of domestic macroeconomic fundamentals. Comparing and quantifying these effects shows that …
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Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use CEX repeated cross-section data on consumption and income to...
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