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condition derived herein, observable shocks are fully shared. The model, therefore, can generate the low degree of risk sharing …
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We study the impact of a government spending shock on the distribution of income and wealth between cohorts in a dynamic stochastic Overlapping Generations model with two types of households, Ricardian households and rule-of-thumb consumers. We demonstrate that an unexpected increase in...
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consumption volatility. A household's currently observed poverty status might therefore not be a good indicator of the household …'s general poverty risk, or in other words its vulnerability to poverty. Although several measurements to analyze vulnerability …
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