We examine a decision theoretic model of portfolio choice in which investors face income risk that is not directly insurable.
The author does not discuss what, specifically, "insurable wealth" included.
Previously prohibitive standards, distinguishing only between insurable and uninsurable risks, now gave rise to more differentiated classifications of insurance.
Rather, the insurance was a matter of right for those who were eligible and achieved an insurable event, namely attaining old age.
Whereas the agents are ex ante identical, there is ex post heterogeneity deriving from two sources: idiosyncratic, only partially insurable shocks to labor productivity and to the discount factor.
The figures exclude part-time women who are not insurable.
It is not the normal practice to pay compensation, particularly where risks are insurable.
He has never been able to re-enter the ranks of insurable employment.
