The comment provides, using household level data, some measures of the magnitude of the increase in income risk and of how much of it has actually resulted in increased consumption risk. The main finding is that household idiosyncratic risk has increased but consumption risk has increased much less. Since the paper suggests that the use of unsecured credit cannot be responsible for stable consumption risk, despite increasing income risk, I explore possible reasons that prevented the rise in consumption risk.
Comment on: “Unsecured credit markets are not insurance markets” by Kartik Athreya, Xuan S. Tam and Eric R. Young
PERRI, FABRIZIO
2009
Abstract
The comment provides, using household level data, some measures of the magnitude of the increase in income risk and of how much of it has actually resulted in increased consumption risk. The main finding is that household idiosyncratic risk has increased but consumption risk has increased much less. Since the paper suggests that the use of unsecured credit cannot be responsible for stable consumption risk, despite increasing income risk, I explore possible reasons that prevented the rise in consumption risk.File in questo prodotto:
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