Income Smoothing and Consumption Smoothing
指出风险规避家庭通过借贷、保险以及多样化经济活动来平滑消费，并强调将两种机制结合研究能更全面理解风险、成本与保险可能性，避免标准检验中的偏差。
One way that risk-averse households protect consumption levels is to borrow and use insurance mechanisms. Another way, common in low-income economies, is to diversify economic activities and make conservative production and employment choices. Households thus tend toward limiting exposure only to shocks that can be handled with available credit and insurance. Typically, both types of mechanisms are studied independently but much more can be learned by studying them together. First, we obtain a more complete picture of risks, costs, and insurance possibilities. Second, it opens the way to considering biases in standard tests of credit and insurance.