Imperfect risk sharing and the business cycle
WitrynaThis paper studies the macroeconomic implications of imperfect risk sharing implied by a class of New Keynesian models with heterogeneous agents. The models in this … Witrynaessentially disappear if the distortion caused by imperfect risk-sharing can be eliminated. The main implication of this result is therefore that boom-bust cycles in …
Imperfect risk sharing and the business cycle
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Witrynaintra-cohort risk sharing is perfect, and the shares of labor or dividend income accruing to a given cohort of investors are locally deterministic processes,1 albeit random over the long run. In this setup we introduce a) imperfect inter-cohort risk sharing and b) recursive utility with a preference for early resolution of uncertainty. WitrynaIn our application, we find that imperfect risk-sharing contributed significantly to the 1 As an example,Kaplan and Violante(2014) show that the consumption response to …
Witryna9 lip 2024 · Imperfect Risk-Sharing and the Business Cycle NBER Working Paper No. w26032 67 Pages Posted: 9 Jul 2024 Last revised: 17 Feb 2024 David Berger … Witryna24 paź 2014 · This paper examines the impact of unemployment insurance on the propagation of monetary disturbances in a staggered price model of the business cycle. To motivate a role for risk sharing behavior, I construct a quantitative equilibrium model that gives prominence to an efficiency-wage theory of unemployment based on an …
Witryna5 sie 2024 · This paper studies the aggregate implications of imperfect risk-sharing implied by a class of New Keynesian models with idiosyncratic income risk and incomplete financial markets. The models in this class can be equivalently represented as an economy with a representative household that has state-dependent preferences. WitrynaI study implications of imperfect risk-sharing for optimal monetary policy by documenting its impacts on the monetary transmission mechanism, the inflation-output tradeoff faced by the central bank, the policy objective …
WitrynaFrictions in state-contingent asset markets lead to imperfect risk-sharing among households with idiosyncratic labor incomes. I study the impacts of the ... price rigidities and thus ampli–es business cycle ⁄uctuations. More recently, Christiano et al. (2007), Gertler and Karadi (2009), and Curdia and Wood-
Witryna17 mar 2024 · Abstract This paper studies the macroeconomic implications of imperfect risk sharing implied by a class of New Keynesian models with heterogeneous … small flower penstemonWitrynaThis paper argues that imperfect risk-sharing among heterogeneous households, due to frictions in asset markets, amplifies price stickiness endogenously and consequently increases the persistence and volatility of business cycles. The main economic mechanism is an idiosyncratic wealth effect on individual household’s labor supply. songs from blast from the pastWitrynaquantify the role of imperfect risk-sharing for business cycle fluctuations. In our application, we find that deviations from perfect risk-sharing contributed significantly … songs from blue storyWitryna1 lut 2008 · The risk-sharing mechanism central to the model permits, but does not force, agents to be fully insured. Structural parameters are estimated using a … small flower petalsWitrynaUnemployment, Imperfect Risk Sharing, and the Monetary Business Cycle Downloadable (with restrictions)! This paper examines the impact of unemployment … small flower photoWitryna• Pension provision is inevitable related to risk taking: Equity market risk Interest rate risk Inflation risk Longevity risk • Many risks can be shared through international financial markets • Other risks can only be shared through collective agreements; Longevity risk (for now) Inflation risk (largely) small flower picturesWitrynaThis paper uses an estimated dynamic stochastic general equilibrium model with nominal and real rigidities, to describe the sources of business cycle fluctuations in Chile. Our results show that foreign shocks and domestic supply shock account for a large share of output fluctuations over the last 20 years. songs from black panther soundtrack