Idiosyncratic Income Risk and Aggregate Fluctuations

• 成果类型: Article
• 署名作者: Debortoli, Davide; Gali, Jordi
• 署名单位: ICREA; Pompeu Fabra University; Centre de Recerca en Economia Internacional (CREI)
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20220382
• 发表日期: 2024
• 页码: 279-310
• 关键词: monetary-policy; macroeconomics; Heterogeneity; transmission; consumption; MARKETS; savings

摘要

We study how the presence of idiosyncratic income risk affects aggre- gate fluctuations in the absence of binding borrowing constraints and/or cyclical income risk. Its impact is shown to be captured by the response of a consumption-weighted average of individual con- sumption risk to aggregate shocks. We analyze two example econo- mies an endowment economy and a New Keynesian economy-and show that, under plausible calibrations, the impact of idiosyncratic income risk on as on aggregate fluctuations is quantitatively small since most of the changes in consumption risk are concentrated among poorer (low-consumption) households. (JEL E12, E21, E24, E32)