default risk, which results in significant decreases in pension benefits. In order to address the challenge of annuity income … decision to increase annuities in the face of annuity income uncertainty is analogous to deciding when to buy the asset in the …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states … systems as those established in the EU are able to offset the negative impact of unemployment risk on the portfolio …

income risk is a key source of priced risk in equity markets. Uninsured income tail risk drives the aggregate demand for …Households are subject to substantial tail risk in individual labor income, and the amount of income risk fluctuates … section, firms facing more elastic demand are more exposed to fluctuations in idiosyncratic tail risk. This risk exposure is …

theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …, experimentally elicited loss aversion and precautionary savings. We do so using a sample of 640 individuals from the low-income …

Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle/Permanent-Income … using a calibrated income process that matches the results in Feigenbaum and Li (2008). In that paper they measure income … uncertainty as the variance of income forecasting errors at different ages and over different time horizons. Here we show that …

related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we …Our estimates indicate that 24% of net wealth is attributed to precautionary savings in Australia. Moreover, across the … income distribution, we find that low-income households have the highest fraction of their wealth accumulation explained by …

related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we …Our estimates indicate that 24% of net wealth is attributed to precautionary savings in Australia. Moreover, across the … income distribution, we find that low-income households have the highest fraction of their wealth accumulation explained by …

It is well known that an uncertain income stream will induce individuals to save if they are forward looking. In this … motivated by the fact that both the dispersion of the U.S. wealth distribution and the variance of transitory income have …