A note on risk sharing against idiosyncratic shocks and geographic mobility in Japan
AbstractIn this study, using Japanese household panel data, we analyze how well idiosyncratic income risks are shared by regions. We find that geographic mobility influences individual consumption growth rates, suggesting that complete asset markets fail to exist. We reject the full insurance hypothesis for both urban and rural areas and find that the extent of risk sharing differs significantly by region.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 54886.
Date of creation: 28 Mar 2014
Date of revision:
Risk sharing; Consumption insurance; Geographic mobility;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-05 (All new papers)
- NEP-IAS-2014-04-05 (Insurance Economics)
- NEP-MAC-2014-04-05 (Macroeconomics)
- NEP-URE-2014-04-05 (Urban & Real Estate Economics)
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