Household risk-sharing channels

Artikel

This paper aims to fill the gaps in the analysis of risk-sharing channels at the microlevel, both within and across households. Using data from the Bank of Italy's Survey on Household Income and Wealth covering the financial crisis, we are able to quantify in a unified and consistent framework several risk-sharing mechanisms that so far have been documented separately. We find that Italian households were able to smooth on average about 85% of shocks to household head's earnings in both 2008-2010 and 2010-2012 spells. The most important smoothing mechanisms turn out to be self-insurance through savings/dissavings (40% and 47% in 2008-2010 and 2010-2012, respectively), and within-household risk-sharing (16% and 14%). Interestingly, risk-sharing through portfolio diversification and private transfers is rather limited, but the overall percentage of shock absorption occurring through private risk-sharing channels hovers around four-fifths, as opposed to around one-fifth of a shock cushioned by taxes and public transfers, excluding pensions. In addition, by exploiting subjective expectations on the following year's household income, we find significant evidence of a lower degree of smoothing of persistent shocks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Quantitative Economics ; ISSN: 1759-7331 ; Volume: 11 ; Year: 2020 ; Issue: 3 ; Pages: 1109-1142 ; New Haven, CT: The Econometric Society

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models ; Consumer Economics: Empirical Analysis ; Macroeconomics: Consumption; Saving; Wealth
• Thema: Household risk-sharing ; precautionary savings ; consumptionsmoothing ; income smoothing

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Asdrubali, Pierfederico ; Tedeschi, Simone ; Ventura, Luigi
• Ereignis: Veröffentlichung
• (wer): The Econometric Society
• (wo): New Haven, CT
• (wann): 2020

Weitere Informationen

• DOI: doi:10.3982/QE1000
• Handle: http://hdl.handle.net/10419/253566
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ