integration has risen. In standard theory, greater financial integration facilitates international borrowing and lending, helping …

wherin a state s representative individual may choose to marry in order to diversify his or her idiosyncratic income risk … undiversifiable risk becomes larger, and when a state s initial income and growth rate is lower. A test of the model s predictions …, using cross-sectional data for the 50 U.S. states, suggests that there is broad support for a risk sharing motive for …

producing human capital. We also demonstrate that this attenuation effect tends to concentrate generational consumption risk … into an i.i.d. generational consumption shock. In other words, each generation bears all of the risk associated with their …

Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle …

that the co-movements between budget deficits and private consumption will depend on how risk averse individuals are. In … iso-elastic utility function, the standard analysis of capital income risk predicts (precautionary) savings to increase … with increased risk if the coefficient for relative risk aversion is greater than one. This is no longer sufficient when …