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Risk-Sharing between and within Families

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  • Hayashi, Fumio
  • Altonji, Joseph
  • Kotlikoff, Laurence

Abstract

This paper uses the Panel Study of Income Dynamics to test whether risk-sharing is complete between or within American families. The tests accommodate wide variety in the configuration and availability of family data. The test results reject inter- as well as intra-family full risk-sharing even assuming that leisure is endogenous or that leisure and consumption are nonseparable. Copyright 1996 by The Econometric Society.

Suggested Citation

  • Hayashi, Fumio & Altonji, Joseph & Kotlikoff, Laurence, 1996. "Risk-Sharing between and within Families," Econometrica, Econometric Society, vol. 64(2), pages 261-294, March.
  • Handle: RePEc:ecm:emetrp:v:64:y:1996:i:2:p:261-94
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