In this paper, I present a theory of dynamic economic growth, business cycles, and asset pricing that integrates (1 … intertemporal consumption and portfolio decisions by risk-averse capitalists facing a contractual labor cost. …

attendant harms. Through an exploration of the relevant evidence and theory, this paper lays out some of the systemic risks the … that unprecedented fiscal stimulus measures present in countering these systemic risks; and explores the theory and … owners to test whether universal ownership theory could become self-fulfilling – and therefore whether universal owners might …

-economy are presented. First, my theory endogenizes completely the three-equation Klein model of consumption function, savings …In this paper, I present a theory of dynamic economic growth, business cycles, and asset pricing that integrates (1 … intertemporal consumption and portfolio decisions by risk-averse capitalists facing a contractual labor cost.The aggregate labor …

response functions of earnings shocks and find important asymmetries: Positive shocks to high-income individuals are quite … transitory, whereas negative shocks are very persistent; the opposite is true for low-income individuals. Finally, we use these …

This paper analyzes the impact increased offshoring has on labor income risk. It is therefore distinct from a large … second moments, i.e. the variance of incomes. It provides an assessment that directly connects labor income risk and …. Permanent income risk is defined as variance of shocks to income that do not fade out over time and are assumed to be not self …

We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

, we estimate nonparametric impulse response functions and find important asymmetries: positive changes for high-income … individuals are quite transitory, whereas negative ones are very persistent; the opposite is true for low-income individuals …

We investigate cyclicality of variance and skewness of household labor income risk using PSID data. There are five main … cyclicality of hourly wages is muted, suggesting that head's labor income risk is mainly coming from the volatility of hours … volatility of household labor income risk. Meanwhile, government taxes and transfers are found to mitigate the level and …

This paper establishes new evidence on the cyclical behaviour of household income risk in Great Britain and assesses …. We then estimate how income risk, measured by the variance and the skewness of the probability distribution of shocks to … the role of social insurance policy in mitigating against this risk. We address these issues using the British Household …