-dimensional incomplete market, which is induced by forced unemployment risk and borrowing constraints. We show that the two dimensions …

We examine the household consumption response to fluctuations in income and uncertainty, exploiting a large panel … dataset that spans the period of the Great Recession. The results show that after controlling for changes in realized income …, both household-specific income uncertainty and local labor market uncertainty depress consumption spending. We also find …

This paper aims to fill the gaps in the analysis of risk‐sharing channels at the microlevel, both within and across … households. Using data from the Bank of Italy's Survey on Household Income and Wealth covering the financial crisis, we are able … to quantify in a unified and consistent framework several risk‐sharing mechanisms that so far have been documented …

endogenous firing as well as a short-time work decision. In recessions, short-time work reduces the unemployment risk of workers …, which mitigates their precautionary savings motive and aggregate demand falls by less. Using a quantitative model analysis …

. By stimulating labor demand, hiring subsidies reduce unemployment risk and precautionary savings. This increases the … more at the zero lower bound than it does during normal times. Central to this result is a precautionary savings channel …

extent income variability does have an effect on post-mortem savings. We approximate the post-mortem savings with the closest …Precautionary savings have often been analyzed with regard to its impact on current savings. This work focuses instead … on the impact of uncertainty on savings under bequest form. We thus turn the focus on estimating whether and to what …

, during which time expected earnings are zero. We find that income uncertainty can alter savings patterns over the lifecycle …Several models of economic behavior currently compete for an explanation of individual wealth accumulation and savings … patterns. In this paper we focus in particular upon the role of income uncertainty, and the role played by a retirement period …

We study how risk aversion affects precautionary savings when considering monotone recursive Kreps-Porteus preferences …. In a general infinite-horizon setting, we prove that risk aversion unambiguously increases precautionary savings. The … result is derived without specifying income uncertainty, which can follow any kind of stochastically monotone process, and …

We study the effect on savings of an increase in the capital risk of the investment opportunities when the … individuals with high risk-aversion and time-separable, power utility increase their optimal savings when capital risk increases …

We analyze precautionary saving behavior in a framework with labor and non-labor income risks, an endogenous supply of … labor, and a representation of preferences that disentangles attitudes towards risk, attitudes towards intertemporal …