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 …

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 …

evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in … consumption inequality did not increase much over this period. Our results support the view that many permanent changes in income …Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance 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 …

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 …

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 …

We measure the extent of consumption insurance to income shocks accounting for high-order moments of the income … distribution. We derive a nonlinear consumption function, in which the extent of insurance varies with the sign and magnitude of … negative shock transmits to consumption compared to 9% of an equal-sized positive shock – and the pass-through increases as the …