A Note on Risk Sharing against Idiosyncratic Shocks and Geographic Mobility in Japan

Tomoaki Yamada
Mar 31, 2014
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In this study, using Japanese household panel data, we analyze how well idiosyncratic income risks are shared by regions. We find that geographic mobility influences individual consumption growth rates, suggesting that complete asset markets fail to exist. We reject the full insurance hypothesis for both urban and rural areas and find that the extent of risk sharing differs significantly by region.

  • MPRA Paper, No. 54886, 2014.
Complete Market Hypothesis Risk Sharing Geographic Mobility JHPS
Tomoaki Yamada
Tomoaki Yamada
Professor of Economics

My research interests include heterogeneity in macroeconomics, inequality, consumption and savings, population aging, and the social security system.

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