In this paper, we develop an analytically tractable dynamic model of optimal consumption and savings decisions with disastrous income risk. We first empirically explore the relations among consumption changes, aggregate income, disaster shock severity, and fiscal measures in 55 countries during...

We develop a new dynamic model of annuitization in which a constant relative risk aversion utility maximizing individual receives non-traded labor income and has to decide on her allocation between a stock and a risk-free asset, as well as decide on the time when she starts her retirement...