?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Consumption+inequality+and+partial+insurance&rft.creator=Blundell%2C+R.&rft.creator=Pistaferri%2C+L.&rft.creator=Preston%2C+I.&rft.description=This+paper+examines+the+transmission+of+income+inequality+into+consumption+inequality+and+in%0D%0Aso+doing+investigates+the+degree+of+insurance+to+income+shocks.+Panel+data+on+income+from+the%0D%0APSID+is+combined+with+consumption+data+from+repeated+CEX+cross-sections+to+identify+the+degree%0D%0Aof+insurance+to+permanent+and+transitory+shocks.+In+the+process+we+also+present+new+evidence+of%0D%0Athe+growth+in+the+variance+of+permanent+and+transitory+shocks+in+the+US+during+the+1980s.+We+find%0D%0Asome+partial+insurance+of+permanent+income+shocks+with+more+insurance+possibilities+for+the+college%0D%0Aeducated+and+those+nearing+retirement.+We+find+little+evidence+against+full+insurance+for+transitory%0D%0Aincome+shocks+except+among+low+income+households.+Tax+and+welfare+benefits+are+found+to+play%0D%0Aan+important+role+in+insuring+permanent+shocks.+Adding+durable+expenditures+to+the+consumption%0D%0Ameasure+suggests+that+durable+replacement+is+an+important+insurance+mechanism%2C+especially+for%0D%0Atransitory+income+shocks.&rft.subject=JEL+classification%3A+D52%2C+D91%2C+I30.+Consumption%2C+insurance%2C+inequality&rft.publisher=Institute+for+Fiscal+Studies&rft.date=2004-11&rft.type=Working+%2F+discussion+paper&rft.language=eng&rft.source=++++(IFS+Working+Papers++W04%2F28).+Institute+for+Fiscal+Studies%3A+London%2C+UK.+(2004)+++++&rft.format=application%2Fpdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F2854%2F1%2F2854.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F2854%2F&rft.rights=open