environment without commitment. A savings account is introduced into the self-enforcing risk-sharing model of Thomas and Worrall … (1988). The risk averse agent's savings play the role of a collateral, thereby improving consumption smoothing. Furthermore …, the optimal use of the savings account relaxes the other agent's self-enforcing constraints. These results depend on the …

This paper analyses the savings behaviour of natives and immigrants in Germany. It is argued that uncertainty about … savings. Using the German dataset, we exploit a natural experiment arising from a change in the nationality law in Germany to … estimate the importance of precautionary savings. Using difference-in-differences approach, we find a significant reduction in …

consumption. It is also a component of the interest elasticity of consumption and the risk aversion of the value function which … function, income risk is found to raise the marginal propensity to consume out of wealth in a multiperiod model with many risky …

consumption. It is also a component of the interest elasticity of consumption and the risk aversion of the value function which … function, income risk is found to raise the marginal propensity to consume out of wealth in a multiperiod model with many risky …

We present a tractable model of the effects of nonfinancial risk on intertemporal choice. Our purpose is to provide a … economy, where most modelers have chosen not to incorporate serious nonfinancial risk because available methods were too … most of the key implications of nonfinancial risk for intertemporal choice. …

(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 … persistence. -- Precautionary savings ; unemployment insurance ; long-term unemployment ; income uncertainty …

Households can rely on private savings or on public unemployment insurance to hedge against the risk of becoming … risk on households’ equity holdings. When incorporating long-term unemployment, the US-equity share drops. This negative … significantly alter portfolio decisions. We show that different responses of portfolios to unemployment risk can be attributed to …

(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 …