The Effects of the Financial Crisis on Actual and Anticipated Consumption
نویسندگان
چکیده
to both economists and policy makers. According to economic theory, the size of the response depends on the degree to which households are insured against such shocks and also whether the economic shock is permanent. Most shocks to wealth are not insured at all. Some shocks to income are insured, but often insurance, such as unemployment benefits, does not replace 100 percent of earnings. In the absence of complete insurance, households need to find ways of buffering shocks.
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