related studies find that low-income households hold low levels of precautionary savings. Using a simple theoretical model, we …Our estimates indicate that 24% of net wealth is attributed to precautionary savings in Australia. Moreover, across the … income distribution, we find that low-income households have the highest fraction of their wealth accumulation explained by …

It is well known that an uncertain income stream will induce individuals to save if they are forward looking. In this … motivated by the fact that both the dispersion of the U.S. wealth distribution and the variance of transitory income have …

disastrous income risk. We first empirically explore the relations among consumption changes, aggregate income, disaster shock … income risk to which the agent is exposed and her income recovery post disaster jointly affect the agent's optimal decisions …In this paper, we develop an analytically tractable dynamic model of optimal consumption and savings decisions with …

financial planners can use to help clients overcome behavioral hurdles.• Risk assessment questions that measure loss aversion … for certainty has been observed in advanced age and older defined contribution investors exhibit equity-varying risk … aversion, so client risk preferences should be reassessed later in life.• Clients face declining cognitive abilities over time …

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 …