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
Main Author: Attanasio, OP
Pavoni, N
Format: Journal Article
Language: English
Place of publication: WILEY-BLACKWELL 01.07.2011
Data of publication: 2011-07
Bibliography: Econometrica , 79 (4) 1027 - 1068. (2011)
Subjects:
Online Access: available in Bonn?
Database: UCL Discovery
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