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 …

significantly influence consumption dynamics. Our estimates of the indexes of relative risk aversion and relative prudence, as well … financial risks on consumption choices in the Mediterranean Region. The analysis is carried out using time series aggregate data …