in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the … because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …

in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households …-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the … because agents can time-diversify their risk. Market insurance implies welfare gains of around .6% in terms of non …

funded and unfunded systems when there are sources of uninsurable risk that are allocated in different ways by different …

and unfunded systems when there are sources of uninsurable risk that are allocated in different ways by different types of …

response. By combining this marginal spending share on durables with an average spending share of 14%, we estimate the annual … depreciation rate of durables in China to be 0.16. …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk … and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher …

may destabilize insurance arrangements among the larger group. We therefore consider self-enforcing risk … must itself employ some self-enforcing risk-sharing agreement. We observe that the stability of subgroups is inimical to …) bounded size, a result in sharp contrast to the individual-deviation problem, and that the degree of risk-sharing in a …

's desire to tilt, smooth and stabilize consumption as well as minimize portfolio risk. In this context we also show how the …

We compile, generalize and extend the results about the comparative static effects of risk changes on optimal risk …-reduction and saving behavior. We use the time-separable discounted expected-utility model and consider income risk, inflation risk …, and interest rate risk. For each type of risk, we trace precautionary risk reduction and precautionary saving to the …