consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and … income process. The empirical application of our framework using data on individual incomes from Mexico provides striking …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …

consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and … income process. The empirical application of our framework using data on individual incomes from Mexico provides striking …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …

This paper shows that the risk of devaluation can be an important factor accounting for the stylized facts of exchange … of a small open economy calibrated to Mexico's 1987-1994 stabilization plan. In the model a time-variant interest rate … tax induces endogenous state-contingent wealth effects via fiscal adjustment and suboptimal investment. Devaluation risk …

analysis uses a tractable consumption-saving model with labor income risk and incomplete markets to relate income dynamics to … of the underlying income process. The empirical application of the framework using data on individual incomes from Mexico … therefore (almost) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or …

This paper shows that the risk of devaluation can be an important factor accounting for the stylized facts of exchange … of a small open economy calibrated to Mexico's 1987-1994 stabilization plan. In the model a time-variant interest rate … tax induces endogenous state-contingent wealth effects via fiscal adjustment and suboptimal investment. Devaluation risk …

analysis uses a tractable consumption-saving model with labor income risk and incomplete markets to relate income dynamics to … of the underlying income process. The empirical application of the framework using data on individual incomes from Mexico … therefore (almost) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or …