This paper develops a method to estimate jointly the degree of intertemporal consumption smoothing and the degree of … assumption on the degree of intertemporal consumption smoothing, the degree of risksharing within a country is larger than across … countries; 2) the degree of intertemporal consumption smoothing within a country is also larger than across countries; 3) The …

improves upon studies that either examine only intertemporal consumption smoothing, or analyze risksharing by making an extreme … assumption on intertemporal consumption smoothing, or by adopting a purely empirical framework. The method is applied to the US … states and OECD and EU countries to analyze how the degrees of risksharing and intertemporal consumption smoothing differ …