Gourinchas, Pierre-Olivier; Parker, Jonathan A - C.E.P.R. Discussion Papers - 2001
changes in risk to fluctuations in aggregate consumption and (d) the significant impact of incomplete markets on aggregate …One of the basic motives for saving is the accumulation of wealth to insure future welfare. Both introspection and … extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the …