首页 | 本学科首页   官方微博 | 高级检索  
     检索      


Uninsured idiosyncratic risk, liquidity constraints and aggregate fluctuations
Authors:Javier Díaz-Giménez
Institution:(1) Departamento de Economía, Universidad Carlos III de Madrid, Calle Madrid 126, E-28903 Getafe, SPAIN, ES
Abstract:Summary. I study the role played by uninsured idiosyncratic risk and liquidity constraints in the propagation of aggregate fluctuations. To this purpose, I compare the aggregate fluctuations of two model economies that differ in their insurance technologies only. In one of these model economies liquidity constrained households vary their holdings of a nominally denominated asset in order to buffer an uninsured idiosyncratic shock to their individual production opportunities. In the other economy every idiosyncratic component of risk can be costlessly insured. I find that the limited insurance technology implies fluctuations in output that are 20% larger, fluctuations in hours relative to output that are 9% larger, fluctuations in consumption relative to output that are 18% smaller, and a correlation of hours and productivity that is 15% smaller than those that obtain under the full insurance technology. Received: March 6, 1996; revised version August 15, 1996
Keywords:JEL Classification Numbers: D58  E21  E32  E44  
本文献已被 SpringerLink 等数据库收录!
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号