Buffer-stock saving and households' response to income shocks

  • We use the Italian Survey of Household Income and Wealth, a rather unique dataset with a long time dimension of panel information on consumption, income and wealth, to structurally estimate a buffer-stock saving model. We exploit the information contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk. The estimated model implies that Italian households can insure between 89 and 95 percent of a transitory and between 7 and 9 percent of a permanent income shock. Compared to existing empirical estimates for the same dataset, our findings suggest that Italian households do not have access to significant insurance beyond self-insurance.

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Metadaten
Author:Giulio Fella, Serafin Frache, Winfried KoenigerORCiDGND
URN:urn:nbn:de:hebis:30:3-428033
URL:https://ssrn.com/abstract=2947137
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 570
Series (Serial Number):CFS working paper series (570)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2017
Year of first Publication:2016
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2017/04/25
Tag:Consumption; Incomplete markets; Insurance; Wealth
Issue:(Oktober 20, 2016)
Page Number:42
HeBIS-PPN:402915615
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht