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 …

In this paper we use the enhanced consumption data in the Panel Survey of Income Dynamics (PSID) from 2005-2017 to … explore the transmission of income shocks to consumption. We build on the nonlinear quantile framework introduced in Arellano …, Blundell and Bonhomme (2017). Our focus is on the estimation of consumption responses to persistent nonlinear income shocks in …

greater than their annuity income after retirement and the difference between total consumption and annuity income increases …

This paper empirically examines the behavioral precautionary saving hypothesis that uncertainty about future income … 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 population of Bogotá, characterized by limited financial education and …

The paper analyzes the impact of positive and negative income shocks on household consumption as part of checking the … to positive and negative changes in income is estimated with the inclusion of the existence of liquidity constraints. The …-fulfillment of the permanent income hypothesis.The article was written on the basis of the RANEPA state assignment research programme …

Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels …) exhibit a higher Marginal Propensity to Consume (MPC) in response to transitory income shocks, all else being equal. This … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction …