题 目：Income Shock, Partial Insurance and Welfare Effect: Differece between Chinese Urban and Rural Consumption
摘要：This paper estimate income shock, partial insurance based minimum distance estimator, and estimate preference parameter based life cycle model and simulated moment method. Using the estimated parameter, we calculate the welfare effect of income shock, partial insurance, and stochastic shock separately for Chinese rural and urban household. We find that Chinese rural household have higher income risk, better risk insurance, and have lower discount factor, slight higher risk aversion, comparing to urban household. The welfare effect of income shock, partial insurance, and stochastic shock is moderate.