Disability shocks and consumption behavior

Luigi Pistaferri () and Hamish Low
Additional contact information
Hamish Low: University of Cambridge

No 323, 2007 Meeting Papers from Society for Economic Dynamics

Abstract: We use longitudinal data on consumption, disability status, disability insurance recipiency, and earnings to measure the welfare loss of disability shocks. We decompose earnings risk into shocks due to the emergency of disability and shocks to general productivity. We then examine the issue of optimality of the DI program, accounting for moral hazard issues having to do with healthy people applying for DI benefits in response to permanent negative shocks to their general productivity.

Date: 2007
References: Add references at CitEc
Citations Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: http://EconPapers.repec.org/RePEc:red:sed007:323

Access Statistics for this paper

More papers in 2007 Meeting Papers from Society for Economic Dynamics
Address: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Contact information at EDIRC.
Series data maintained by Christian Zimmermann ().