Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/157284
Authors: 
Fella, Giulio
Frache, Serafin
Koeniger, Winfried
Year of Publication: 
2017
Series/Report no.: 
CFS Working Paper Series 570
Abstract: 
We use the Italian Survey of Household Income and Wealth, a rather unique dataset with a long time dimension of panel information on consumption, income and wealth, to structurally estimate a buffer-stock saving model. We exploit the information contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk. The estimated model implies that Italian households can insure between 89 and 95 percent of a transitory and between 7 and 9 percent of a permanent income shock. Compared to existing empirical estimates for the same dataset, our findings suggest that Italian households do not have access to significant insurance beyond self-insurance.
Subjects: 
Consumption
Wealth
Incomplete markets
Insurance
JEL: 
D91
E21
Document Type: 
Working Paper

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