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Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that allowing for these rich features of earnings dynamics, in the context of a structurally estimated life-cycle portfolio choice model, helps to rationalize the limited participation...
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This report summarises key stylised facts from the first wave of the Eurosystem Household Finance and Consumption … Survey, which provides household-level data collected in a harmonised way in 15 euro area countries for a sample of more than … 62,000 households. The report presents results on household assets and liabilities, income, and indicators of consumption …
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We use the Italian Survey of Household Income and Wealth, a rather unique dataset with a long time dimension of panel … information on consumption, income and wealth, to structurally estimate a buffer-stock saving model. We exploit the information … contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk. The …
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