Econometrica: Mar 1996, Volume 64, Issue 2
Risk-Sharing between and within Families
https://doi.org/0012-9682(199603)64:2<261:RBAWF>2.0.CO;2-Q
p.
261-294
Fumio Hayashi, Joseph Altonji, Laurence Kotlikoff
This paper uses the Panel Study of Income Dynamics to test whether risk-sharing is complete between or within American families. The tests accommodate a wide variety in the configuration and availability of family data. The test results reject inter- as well as intra-family full risk-sharing even assuming that leisure is endogenous or that leisure and consumption are nonseparable.Log In To View Full Content