{"id":"https://openalex.org/W3122864551","doi":"https://doi.org/10.1257/aer.97.4.1488","title":"Individual Consumption Risk and the Welfare Cost of Business Cycles","display_name":"Individual Consumption Risk and the Welfare Cost of Business Cycles","publication_year":2007,"publication_date":"2007-08-01","ids":{"openalex":"https://openalex.org/W3122864551","doi":"https://doi.org/10.1257/aer.97.4.1488","mag":"3122864551"},"language":"en","primary_location":{"id":"doi:10.1257/aer.97.4.1488","doi":"https://doi.org/10.1257/aer.97.4.1488","is_oa":false,"landing_page_url":"https://doi.org/10.1257/aer.97.4.1488","pdf_url":null,"source":{"id":"https://openalex.org/S23254222","display_name":"American Economic Review","issn_l":"0002-8282","issn":["0002-8282","1944-7981"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310315912","host_organization_name":"American Economic Association","host_organization_lineage":["https://openalex.org/P4310315912"],"host_organization_lineage_names":["American Economic Association"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"American Economic Review","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"green","oa_url":"https://doi.org/10.2139/ssrn.782338","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5085068581","display_name":"Massimiliano De Santis","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I107672454","display_name":"Dartmouth College","ror":"https://ror.org/049s0rh22","country_code":"US","type":"education","lineage":["https://openalex.org/I107672454"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Massimiliano De Santis","raw_affiliation_strings":["Department of Economics, Dartmouth College, 6106 Rockefeller Hall, Hanover, NH 03755"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Economics, Dartmouth College, 6106 Rockefeller Hall, Hanover, NH 03755","institution_ids":["https://openalex.org/I107672454"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":["https://openalex.org/A5085068581"],"corresponding_institution_ids":["https://openalex.org/I107672454"],"apc_list":null,"apc_paid":null,"fwci":7.7691,"has_fulltext":false,"cited_by_count":93,"citation_normalized_percentile":{"value":0.97225913,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":89,"max":100},"biblio":{"volume":"97","issue":"4","first_page":"1488","last_page":"1506"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10007","display_name":"Monetary Policy and Economic Impact","score":0.6952999830245972,"subfield":{"id":"https://openalex.org/subfields/2000","display_name":"General Economics, Econometrics and Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10007","display_name":"Monetary Policy and Economic Impact","score":0.6952999830245972,"subfield":{"id":"https://openalex.org/subfields/2000","display_name":"General Economics, Econometrics and Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12137","display_name":"Economic theories and models","score":0.2199999988079071,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11742","display_name":"Economic Theory and Policy","score":0.020400000736117363,"subfield":{"id":"https://openalex.org/subfields/2000","display_name":"General Economics, Econometrics and Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/welfare-cost-of-business-cycles","display_name":"welfare cost of business cycles","score":0.8709999918937683},{"id":"https://openalex.org/keywords/idiosyncratic-risk","display_name":"idiosyncratic risk","score":0.8999999761581421},{"id":"https://openalex.org/keywords/consumption-risk","display_name":"consumption risk","score":0.5490000247955322},{"id":"https://openalex.org/keywords/consumption-smoothing","display_name":"consumption smoothing","score":0.38499999046325684}],"concepts":[{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.8579238653182983},{"id":"https://openalex.org/C30772137","wikidata":"https://www.wikidata.org/wiki/Q5164762","display_name":"Consumption (sociology)","level":2,"score":0.8209832906723022},{"id":"https://openalex.org/C100243477","wikidata":"https://www.wikidata.org/wiki/Q12002092","display_name":"Welfare","level":2,"score":0.7846314907073975},{"id":"https://openalex.org/C80212096","wikidata":"https://www.wikidata.org/wiki/Q1975416","display_name":"Systematic risk","level":2,"score":0.6416898965835571},{"id":"https://openalex.org/C4679612","wikidata":"https://www.wikidata.org/wiki/Q866298","display_name":"Aggregate (composite)","level":2,"score":0.5618499517440796},{"id":"https://openalex.org/C83873408","wikidata":"https://www.wikidata.org/wiki/Q192311","display_name":"Business cycle","level":2,"score":0.4867086708545685},{"id":"https://openalex.org/C2780138423","wikidata":"https://www.wikidata.org/wiki/Q7239395","display_name":"Precautionary savings","level":3,"score":0.44236430525779724},{"id":"https://openalex.org/C2779629923","wikidata":"https://www.wikidata.org/wiki/Q1754086","display_name":"Social welfare function","level":3,"score":0.43877509236335754},{"id":"https://openalex.org/C169488363","wikidata":"https://www.wikidata.org/wiki/Q1398935","display_name":"Consumption function","level":3,"score":0.43245190382003784},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.39129874110221863},{"id":"https://openalex.org/C149782125","wikidata":"https://www.wikidata.org/wiki/Q160039","display_name":"Econometrics","level":1,"score":0.3869408071041107},{"id":"https://openalex.org/C2778348673","wikidata":"https://www.wikidata.org/wiki/Q739302","display_name":"Production (economics)","level":2,"score":0.3517547845840454},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.29521244764328003},{"id":"https://openalex.org/C139719470","wikidata":"https://www.wikidata.org/wiki/Q39680","display_name":"Macroeconomics","level":1,"score":0.17012259364128113},{"id":"https://openalex.org/C159985019","wikidata":"https://www.wikidata.org/wiki/Q181790","display_name":"Composite material","level":1,"score":0.0},{"id":"https://openalex.org/C183582576","wikidata":"https://www.wikidata.org/wiki/Q184783","display_name":"Market liquidity","level":2,"score":0.0},{"id":"https://openalex.org/C144024400","wikidata":"https://www.wikidata.org/wiki/Q21201","display_name":"Sociology","level":0,"score":0.0},{"id":"https://openalex.org/C36289849","wikidata":"https://www.wikidata.org/wiki/Q34749","display_name":"Social science","level":1,"score":0.0},{"id":"https://openalex.org/C34447519","wikidata":"https://www.wikidata.org/wiki/Q179522","display_name":"Market economy","level":1,"score":0.0},{"id":"https://openalex.org/C192562407","wikidata":"https://www.wikidata.org/wiki/Q228736","display_name":"Materials science","level":0,"score":0.0}],"mesh":[],"locations_count":4,"locations":[{"id":"doi:10.1257/aer.97.4.1488","doi":"https://doi.org/10.1257/aer.97.4.1488","is_oa":false,"landing_page_url":"https://doi.org/10.1257/aer.97.4.1488","pdf_url":null,"source":{"id":"https://openalex.org/S23254222","display_name":"American Economic Review","issn_l":"0002-8282","issn":["0002-8282","1944-7981"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310315912","host_organization_name":"American Economic Association","host_organization_lineage":["https://openalex.org/P4310315912"],"host_organization_lineage_names":["American Economic Association"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"American Economic Review","raw_type":"journal-article"},{"id":"doi:10.2139/ssrn.782338","doi":"https://doi.org/10.2139/ssrn.782338","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.782338","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"acceptedVersion","is_accepted":true,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"},{"id":"pmh:oai:CiteSeerX.psu:10.1.1.832.8668","doi":null,"is_oa":false,"landing_page_url":"http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.832.8668","pdf_url":null,"source":null,"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":"http://works.bepress.com/massi_de_santis/3/download/","raw_type":"text"},{"id":"pmh:oai:RePEc:aea:aecrev:v:97:y:2007:i:4:p:1488-1506","doi":null,"is_oa":false,"landing_page_url":"http://www.aeaweb.org/articles.php?doi=10.1257/aer.97.4.1488","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":{"id":"doi:10.2139/ssrn.782338","doi":"https://doi.org/10.2139/ssrn.782338","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.782338","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"acceptedVersion","is_accepted":true,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"},"sustainable_development_goals":[],"sustainable_development_goals_aurora":[{"id":"https://metadata.un.org/sdg/8","display_name":"Decent work and economic growth","score":0.6299999952316284}],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":33,"referenced_works":["https://openalex.org/W1532409097","https://openalex.org/W1965354772","https://openalex.org/W1994619981","https://openalex.org/W2026253233","https://openalex.org/W2026605399","https://openalex.org/W2034162260","https://openalex.org/W2061044658","https://openalex.org/W2069097987","https://openalex.org/W2069634547","https://openalex.org/W2072932574","https://openalex.org/W2073465757","https://openalex.org/W2076306791","https://openalex.org/W2094139620","https://openalex.org/W2102176436","https://openalex.org/W2103849347","https://openalex.org/W2104187973","https://openalex.org/W2107958788","https://openalex.org/W2113704261","https://openalex.org/W2115942365","https://openalex.org/W2116156442","https://openalex.org/W2120462834","https://openalex.org/W2161781848","https://openalex.org/W2889689669","https://openalex.org/W2890805348","https://openalex.org/W2891651158","https://openalex.org/W2892197067","https://openalex.org/W3023619695","https://openalex.org/W3121391630","https://openalex.org/W3123139765","https://openalex.org/W3124704119","https://openalex.org/W3124906991","https://openalex.org/W3125317759","https://openalex.org/W3125360998"],"related_works":["https://openalex.org/W7095892507","https://openalex.org/W3125560009","https://openalex.org/W2165520183","https://openalex.org/W4407312634","https://openalex.org/W7095629093","https://openalex.org/W2069134289","https://openalex.org/W1553280960","https://openalex.org/W2162390867","https://openalex.org/W3032935270","https://openalex.org/W2187315044"],"abstract_inverted_index":{"This":[0],"paper":[1],"measures":[2],"the":[3,42,57,60,78,81,143,153,174,194],"welfare":[4,35,82,132,138],"gain":[5,36,83,139,161],"from":[6,12],"removing":[7,122],"aggregate":[8,21,47,126],"consumption":[9,28,44,89,103,190],"fluctuations":[10,127],"starting":[11],"an":[13,113],"economy":[14,114],"in":[15,112,129,142],"which":[16],"each":[17,52],"individual":[18,53,88],"faces":[19],"both":[20],"and":[22,26,162],"idiosyncratic":[23,49,175],"income":[24,178],"shocks,":[25,183],"incomplete":[27],"insurance.":[29],"We":[30,74,150],"show":[31,76,110],"that,":[32],"because":[33,169],"this":[34],"is":[37,63],"a":[38,92,130,136,159],"convex":[39],"function":[40,84],"of":[41,59,80,125],"overall":[43,68,119],"risk":[45,69,90,104],"-":[46,50],"plus":[48],"that":[51,77,111,156,164,173],"faces,":[54],"to":[55,65,71,116,177,188],"gauge":[56],"magnitude":[58],"gain,":[61],"it":[62],"important":[64],"match":[66,117],"individuals'":[67,118],"prior":[70],"any":[72],"policy.":[73,198],"also":[75,151],"convexity":[79],"increases":[85],"substantially":[86],"if":[87],"contains":[91],"realistic":[93],"random":[94],"walk":[95],"component.":[96],"While":[97],"being":[98],"agnostic":[99],"about":[100],"how":[101],"much":[102],"countercyclical":[105,197],"policy":[106],"can":[107,185],"remove,":[108],"we":[109],"calibrated":[115],"risk,":[120],"even":[121,141],"ten":[123],"percent":[124],"results":[128],"large":[131],"gain.":[133],"In":[134],"fact,":[135],"sizable":[137],"arises":[140],"simple":[144],"model":[145],"used":[146],"by":[147],"Lucas":[148],"(1987).":[149],"review":[152],"previous":[154],"literature":[155],"has":[157],"found":[158],"low":[160,168],"argue":[163],"their":[165],"estimates":[166],"are":[167,179],"they":[170],"unrealistically":[171],"assume":[172],"shocks":[176],"transitory.":[180],"With":[181],"transitory":[182],"individuals":[184],"come":[186],"close":[187],"perfect":[189],"insurance,":[191],"thus":[192],"undercutting":[193],"need":[195],"for":[196]},"counts_by_year":[{"year":2026,"cited_by_count":1},{"year":2025,"cited_by_count":2},{"year":2024,"cited_by_count":3},{"year":2023,"cited_by_count":6},{"year":2022,"cited_by_count":7},{"year":2021,"cited_by_count":6},{"year":2020,"cited_by_count":2},{"year":2019,"cited_by_count":4},{"year":2018,"cited_by_count":8},{"year":2017,"cited_by_count":2},{"year":2016,"cited_by_count":3},{"year":2015,"cited_by_count":9},{"year":2014,"cited_by_count":15},{"year":2013,"cited_by_count":1},{"year":2012,"cited_by_count":6}],"updated_date":"2026-10-28T10:33:24.094632","created_date":"2021-02-01T00:00:00"}
