consistent with several features of consumption data including (i) the substantial rise in within-cohort consumption inequality … (Deaton and Paxson 1994), (ii) the non-concave shape of the age-inequality profile (which the RIP model is not consistent with …

level of interest rate but is more inequality reducing. By taking into account different assets returns and unequal access … to them, we find that the PAYG pension system generates lower level of interest rate and increases wealth inequality. By … using Matsuyama's (2000) technology that generates dynamic endogenous inequality, we represent the bequest and saving …

-agent economies with partial insurance. The environment allows for trade in non-contingent and state-contingent bonds, for permanent … over the period 1967-1996. We then use the estimated parameter values to decompose inequality in all variables of interest …

decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

use of a more accurate approximation allowing for partial sef-insurance against permanent shocks. We show that the use of … data on median asset holdings corrects much of the error in the simple approximation which assumes no self-insurance …

stratified by education. Our estimates strongly reject the consumption insurance model and suggest that households smooth income …

The theory of full consumption insurance posits that households are insulated from all idiosyncratic shocks so that the … ratio of the marginal utilities of consumption of any two households is constant over time. Consumption insurance therefore … measurement error in consumption. The findings strongly reject the theory of full consumption insurance. …

The theory of full consumption insurance posits that households are insulated from all idiosyncratic shocks so that the … ratio of the marginal utilities of consumption of any two households is constant over time. Consumption insurance therefore … measurement error in consumption. The findings strongly reject the theory of full consumption insurance. …

This paper uses panel data on household consumption and income to evaluate the degree of insurance to income shocks …. Our aim is to describe the transmission of income inequality into consumption inequality. Our framework nests the special … cases of self-insurance and the complete markets assumption. We assess the degree of insurance over and above self-insurance …