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 decompose idiosyncratic changes in income into predictable life … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

This paper documents a marked increase in international consumption risk sharing throughout the recent globalization … elsewhere. Still, the increase in international income flows falls short of explaining all of the consumption risk sharing we … explaining this result. While countries with less portfolio home bias enjoy better consumption risk sharing, our findings also …