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due to the limited pledgeability of human capital. We show analytically that, consistent with the life insurance data, in … account for the life-cycle variation of life-insurance holdings, financial wealth, earnings, and consumption inequality … insurance. …
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We use a two factor model of life insurer stock returns to measure interest rate risk at U.S. and U.K. insurers. Our estimates show that interest rate risk among U.S. life insurers increased as interest rates decreased to historically low levels in recent years. For life insurers in the U.K., in...
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with the life insurance data, in equilibrium young households are borrowing constrained and under-insured against human … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life-insurance … to a substantial increase in the volume of both credit and insurance. …
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