How Much Consumption Insurance Beyond Self-Insurance?
---- Acknowledgements ----
We thank Richard Blundell, Eric French, and Luigi Pistaferri. Violante is grateful to the National Science Foundation (grant SES-0418029) for financial support. The views expressed here are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. Previous versions of the paper circulated with the title "How Much Insurance in Bewley Models?" The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.