Household Risk Management and Family Composition (Household)

Abstract:

This project seeks to contribute to the academic discussions on how households' financial risk taking is affected by unexpected changes in family composition. Family size is one source of background risk, a type of risk that households cannot insure themselves against. Households should therefore respond to unexpected changes in their composition, due to multiple births for example, by decreasing their exposure to financial risks and the goal of this paper is to bring this prediction to data.