Gobert, Karine; Poitevin, Michel - Centre Interuniversitaire de Recherche en Analyse des … - 1997
This paper studies the effect of combining different insurance schemes on the efficiency of consumption smoothing in an … (1988). The risk averse agent's savings play the role of a collateral, thereby improving consumption smoothing. Furthermore … savings and debt substitutable. If these assumptions are relaxed, consumption smoothing worsens but is still better than what …