The Value of Public Insurance Against Idiosyncratic Income Risk: A Variance-Adjustment Statistic

Apr 2, 2026·
Chris Busch
Rocío Madera
Rocío Madera
· 1 min read
Abstract
Develops a statistic for valuing public insurance against idiosyncratic income risk through variance adjustments.
Type
Publication
under review
Status
Open access
publications

Submitted. CEPR DP21129. CESifo WP12467.

Rocío Madera
Authors
Assistant Professor of Economics
I am an Assistant Professor in the Department of Economics at Southern Methodist University and a CESifo Research Network Research Affiliate. My research combines rich micro-data with quantitative models to study how labor-market risk, fiscal transfers, and local economic conditions shape heterogeneous household decisions and welfare. Download my CV here to learn more about me and my work.