RISK SHARING IN PRIVATE INFORMATION MODELS WITH ASSET ACCUMULATION: EXPLAINING THE EXCESS SMOOTHNESS OF CONSUMPTION

We study testable implications for the dynamics of consumption and income of models in which first-best allocations are not achieved because of a moral hazard problem with hidden saving. We show that in this environment, agents typically achieve more insurance than that obtained under self-insurance...

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Bibliographic details
Volume:	79
Main Author:	Orazio P. Attanasio Nicola Pavoni
Format:	Journal Article
Language:	English
Zielgruppe:	Academic
Place of publication:	Oxford, UK Econometric Society 01.07.2011 Blackwell Publishing Ltd WILEY-BLACKWELL Wiley-Blackwell Wiley Subscription Services, Inc
published in:	Econometrica Vol. 79; no. 4; pp. 1027 - 1068
Data of publication:	20110701
ISSN:	0012-9682 1468-0262
EISSN:	1468-0262
Discipline:	Economics Mathematics Statistics
Bibliography:	We are grateful for comments received from Marco Bassetto, Richard Blundell, Harald Uhlig, three anonymous referees, participants at the 2004 SED annual meeting, and several seminar audiences. Attanasio's research was financed by the ESRC Professorial Fellowship Grant RES‐051‐27‐0135. Nicola Pavoni thanks the Spanish Ministry of Science and Technology for Grant BEC2001‐1653.
Subjects:	Consumer research Moral hazard models Spreading risk Self insurance Consumer economics Consumer information Information modeling Budget constraints Euler equations Coefficients Consumption hidden savings excess smoothness private information Economics Mathematics, Interdisciplinary Applications Statistics & Probability Physical Sciences Social Sciences Social Sciences, Mathematical Methods Business & Economics Mathematics Mathematical Methods In Social Sciences Science & Technology Linear inference, regression Applications Special processes (renewal theory, markov renewal processes, semi-markov processes, statistical mechanics type models, applications) Insurance, economics, finance Exact sciences and technology Probability theory and stochastic processes Probability and statistics Statistics Biology, psychology, social sciences Sciences and techniques of general use Insurance policies Models Consumption LIFE-CYCLE excess smoothness private information INEQUALITY PERMANENT INCOME HYPOTHESIS INSURANCE EFFICIENT ALLOCATIONS FORMULATION MORAL HAZARD GROWTH hidden savings OPTIMAL TAXATION TIME-SERIES Market structure Covariance analysis Finance Parameterization Economic sciences Variance analysis Variance Statistical method Statistical regression Risk model Economy Theoretical model Insurance Cross sectional study Environment Econometrics
Online Access:	Fulltext
CODEN:	ECMTA7
Database:	Social Sciences Citation Index Web of Science - Social Sciences Citation Index - 2011 Web of Science - Science Citation Index Expanded - 2011 Web of Knowledge Science Citation Index Expanded Web of Science Pascal-Francis CrossRef Academic OneFile (A&I only) Database information Databases - DBIS