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 …

This paper measures how households smooth changes in consumption when incomes are shifted by permanent or transitory … shocks at country and regional level. I compute insurance capacity using the Spanish Continuous Family Expenditure Survey … skipping the imputation methods used by the previous literature to mitigate the significant lack of income and consumption …

inequality and to assess the degree of insurance. We combine panel data on income from the PSID with consumption data from …This paper uses panel data on household consumption and income to describe the transmission of income inequality into … consumption inequality. We do this by contrasting shifts in the cross-sectional distribution of income growth with shifts in the …

stratified by education. Our estimates strongly reject the consumption insurance model and suggest that households smooth income …The theory of intertemporal consumption choice makes sharp predictions about the evolution of the entire distribution … of household consumption, not just about its conditional mean. In the paper, we study the empirical transition matrix of …

partial insurance of parental investments against permanent income shocks, and we cannot reject the hypothesis full insurance … 10% of family income leads, at most, to an increase in investments of 1.3% of a standard deviation. -- insurance ; human … capital ; consumption …

partial insurance of parental investments against permanent income shocks, but the magnitude of the estimated responses is … small. We cannot reject the hypothesis full insurance against temporary shocks. Another interpretation of our findings is … that there is very little insurance available, but the fact that skill is a non-separable function of parental investments …

consumption data. We develop a specific approximation to the optimal consumption growth rule and use Monte Carlo evidence to show … 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 intertemporal consumption choice makes sharp predictions about the evolution of the entire distribution … of household consumption, not just about its conditional mean. In the paper, we study the empirical transition matrix of …

partial insurance of parental investments against permanent income shocks, but the magnitude of the estimated responses is … small. We cannot reject the hypothesis full insurance against temporary shocks. Another interpretation of our findings is … that there is very little insurance available, but the fact that skill is a non-separable function of parental investments …

In this paper we examine the link between wage inequality and consumption inequality using a life cycle model that …, earnings, assets and consumption. We focus on the importance of family labour supply as an insurance mechanism to wage shocks … incorporates household consumption and family labour supply decisions. We derive analytical expressions based on approximations for …