literature, the habit hypothesis does not imply a price for risk much higher than the one implied by models with intertemporally … will not command a high price of risk because households manage to avoid this risk. Second, the composition of the set of …

hypothesis does not imply a price for risk as big as the one measured in the data. There are three reasons for this. First … pricing risk in the economy changes so that relatively better self-insured households end up pricing risk. …

We develop a new approach to the decomposition of income risk within a nonstationary model of intertemporal choice. The … approach allows for changes in income risk over the life-cycle and with the business cycle. It requires only repeated cross … decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

Although many studies in macroeconomics have examined the role of insurance in the presence of income risk, whether …

labor market risk, infuences the degree of polarization in the wealth distribution, as poor agents in particular save more … if the income process is more volatile. With low risk, there are two distinct population groups: the poor and the rich …. There is no mobility between groups, and the wealth distribution is history dependent. With high risk, there is mobility …

This paper studies the optimal determination of bankruptcy exemptions for risk averse borrowers who use unsecured …