A note on risk sharing against idiosyncratic shocks and geographic mobility in Japan
In 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.
|Date of creation:||28 Mar 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maurizio Mazzocco & Shiv Saini, 2012. "Testing Efficient Risk Sharing with Heterogeneous Risk Preferences," American Economic Review, American Economic Association, vol. 102(1), pages 428-68, February.
- Yamada, Tomoaki, 2013. "Cross-sectional Facts in Japan using Keio Household Panel Survey," MPRA Paper 49813, University Library of Munich, Germany.
- Hayashi, Fumio & Altonji, Joseph & Kotlikoff, Laurence, 1996. "Risk-Sharing between and within Families," Econometrica, Econometric Society, vol. 64(2), pages 261-94, March.
- Michael Artis & Toshihiro Okubo, 2011.
"The intranational business cycle in Japan,"
Oxford Economic Papers,
Oxford University Press, vol. 63(1), pages 111-133, January.
- Gregory D. Hess & Kwanho Shin, 1997.
"Risk sharing by households within and across regions and industries,"
Research Working Paper
97-07, Federal Reserve Bank of Kansas City.
- Hess, Gregory D. & Shin, Kwanho, 2000. "Risk sharing by households within and across regions and industries," Journal of Monetary Economics, Elsevier, vol. 45(3), pages 533-560, June.
- Kohara, Miki & Ohtake, Fumio & Saito, Makoto, 2002.
"A Test of the Full Insurance Hypothesis: The Case of Japan,"
Journal of the Japanese and International Economies,
Elsevier, vol. 16(3), pages 335-352, September.
- Kohara, Miki & Ohtake, Fumio & Saito, Makoto, 2001. "A Test of the Full Insurance Hypothesis: The Case of Japan," Discussion Papers 2001-05, Graduate School of Economics, Hitotsubashi University.
- Mace, Barbara J, 1991. "Full Insurance in the Presence of Aggregate Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 928-56, October.
- Sam Schulhofer-Wohl, 2011.
"Heterogeneity and Tests of Risk Sharing,"
Journal of Political Economy,
University of Chicago Press, vol. 119(5), pages 925 - 958.
- Martin Ravallion & Shubham Chaudhuri, 1997. "Risk and Insurance in Village India: Comment," Econometrica, Econometric Society, vol. 65(1), pages 171-184, January.
- Cochrane, John H, 1991. "A Simple Test of Consumption Insurance," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 957-76, October.
- Fatih Guvenen, 2011.
"Macroeconomics with hetereogeneity : a practical guide,"
Federal Reserve Bank of Richmond, issue 3Q, pages 255-326.
- Fatih Guvenen, 2011. "Macroeconomics With Heterogeneity: A Practical Guide," NBER Working Papers 17622, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:54886. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.