English   español  
Por favor, use este identificador para citar o enlazar a este item: http://hdl.handle.net/10261/125491
Compartir / Impacto:
Estadísticas
Add this article to your Mendeley library MendeleyBASE
Visualizar otros formatos: MARC | Dublin Core | RDF | ORE | MODS | METS | DIDL
Título

Risk sharing with limited commitment and preference heterogeneity: Structural estimation and testing

AutorLaczó, Sarolta
Fecha de publicación31-oct-2014
EditorJohn Wiley & Sons
European Economic Association
CitaciónJournal of the European Economic Association 13(2): 265-292 (2015)
Resumen© 2014 by the European Economic Association. In order to analyze the role of limited commitment and preference heterogeneity in explaining the consumption allocation, I propose a theoretical and empirical framework to estimate and evaluate a risk-sharing model where insurance transfers have to be self-enforcing and the coefficient of relative risk aversion may depend on observable household characteristics. I compare this model to benchmark models with full commitment and/or without preference heterogeneity using data from three Indian villages. I find that the limited commitment model with heterogeneous preferences outperforms the benchmark models in a statistical sense and in terms of (i) explaining the dynamic response of consumption to idiosyncratic income shocks, (ii) accounting for the variation of consumption unexplained by household and time effects, and (iii) capturing the variation of inequality across time and villages and predicting changes in inequality. I also use the estimated models to predict the effects of a counterfactual tax and transfer policy on the consumption allocation. The limited commitment model with preference heterogeneity predicts larger benefits to the poor than its homogeneous counterpart.
Versión del editorhttp://dx.doi.org/10.1111/jeea.12115
URIhttp://hdl.handle.net/10261/125491
DOI10.1111/jeea.12115
Identificadoresdoi: 10.1111/jeea.12115
issn: 1542-4774
Aparece en las colecciones: (IAE) Artículos
Ficheros en este ítem:
Fichero Descripción Tamaño Formato  
accesoRestringido.pdf15,38 kBAdobe PDFVista previa
Visualizar/Abrir
Mostrar el registro completo
 

Artículos relacionados:


NOTA: Los ítems de Digital.CSIC están protegidos por copyright, con todos los derechos reservados, a menos que se indique lo contrario.