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Replication data for: The Wrong Shape of Insurance? What Cross-Sectional Distributions Tell Us about Models of Consumption Smoothing

Version
V0
Resource Type
Dataset
Creator
  • Broer, Tobias
Publication Date
2013-10-01
Description
  • Abstract

    This paper shows how two standard models of consumption risk-sharing—self-insurance through borrowing and saving and limited commitment to insurance contracts—replicate similarly well the standard, second-moment measures of insurance observed in US micro data. A nonparametric analysis, however, reveals strongly contrasting and counterfactual joint distributions of consumption, income and wealth. Method of moments estimation shows how measurement error in consumption eliminates excessive skewness and smoothness of consumption growth. Moreover, counterfactual nonlinearities disappear at high-estimated risk aversion under selfinsurance, but are a robust feature of limited commitment. Its "shape of insurance" thus argues in favor of the self-insurance model.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/mac.5.4.107 (Text)
Publications
  • Broer, Tobias. “The Wrong Shape of Insurance? What Cross-Sectional Distributions Tell Us about Models of Consumption Smoothing.” American Economic Journal: Macroeconomics 5, no. 4 (October 2013): 107–40. https://doi.org/10.1257/mac.5.4.107.
    • ID: 10.1257/mac.5.4.107 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Broer, Tobias (2013): Replication data for: The Wrong Shape of Insurance? What Cross-Sectional Distributions Tell Us about Models of Consumption Smoothing. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116429