Partial insurance in Japan

Kohei Kubota ()
Additional contact information
Kohei Kubota: Chuo University

The Japanese Economic Review, 2021, vol. 72, issue 2, No 7, 299-328

Abstract: Abstract This study estimates the degree of the transmission of income shocks to consumption using the partial insurance model of Blundell et al. (2008) and data taken from the Japanese Panel Survey of Consumers that cover the recessions in the 2000s. The analysis finds that the transmission of permanent income shocks to consumption was insured by half, whereas transitory income shocks were almost fully insured. Meanwhile, permanent income shocks statistically did not change over this period, whereas transitory income shocks did. These results suggest that the partial insurance model does not contradict observational changes in consumption and income inequality.

Keywords: Income shocks; Consumption; Insurance; Inequality (search for similar items in EconPapers)
JEL-codes: D12 D13 D91 E21 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s42973-019-00034-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jecrev:v:72:y:2021:i:2:d:10.1007_s42973-019-00034-7

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/42973

DOI: 10.1007/s42973-019-00034-7

Access Statistics for this article

The Japanese Economic Review is currently edited by Michihiro Kandori

More articles in The Japanese Economic Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().