Risk-Sharing, Vulnerability and the Global Financial Crisis.

• Autores: Stephen M. Miller
• Localización: Economic record, ISSN 0013-0249, Vol. 90, Nº. 289, 2014, págs. 220-235
• Idioma: inglés
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• Resumen

  • Tests using Household, Income and Labour Dynamics in Australia unit record data from 2006-07 to 2010-11 indicate that Australian households on average insure against idiosyncratic income shocks. For a 10 per cent change in income, non-durable expenditures change by 0.14 per cent, while food expenditures change by 0.05 per cent; both results are statistically insignificant. Non-durable expenditures respond asymmetrically to positive and negative income shocks, especially during the Global Financial Crisis, rising by 0.1 per cent for a 10 per cent income rise but falling by 0.6 per cent for a 10 per cent income decline in 2009; the latter result is statistically significant. Controlling for risk tolerance heterogeneity yields identical results.