Firm-Related Risk and Precautionary Saving Response
基于挪威行政数据，利用企业特定冲击的方差作为工具变量，估计欧拉方程以识别预防性动机强度，发现相对谨慎系数约为2。
We propose a new approach to identify the strength of the precautionary motive and the extent of self-insurance in response to earnings risk based on Euler equation estimates. To address endogeneity problems, we use Norwegian administrative data and instrument consumption and earnings volatility with the variance of firm-specific shocks. The instrument is valid because firms pass some of their productivity shocks onto wages; moreover, for most workers, firm shocks are hard to avoid. Our estimates suggest a coefficient of relative prudence of 2, in a very plausible range.