Low, Hamish; Meghir, Costas; Pistaferri, Luigi - Institute for Fiscal Studies (IFS) - 2008
Institute for Theoretical
Economics, the 2006 Cowles Macro-Labor Conference, the “Macroeconomics of Imperfect Risk Sharing … so we ignore
business cycle effects. We focus instead on the implications of idiosyncratic risk for behavior and
for … welfare. By contrast, Lucas (1987) and others focus on the welfare benefit of smoothing out the
aggregate business cycle risk …