Consumption dynamics of Latinos and Asians in the US

We document differences in the degree of partial insurance of consumption vs permanent income shocks between Caucasians, Latinos and Asians in the US. Caucasian and Asian individuals share a rather high degree of partial insurance, Asians being slightly more insured than the Caucasians. On the other hand, Latinos are the less insured group, with around 80% of a permanent income shock reverberating into their consumption. •We find that Caucasians, Latinos and Asians are differently insured vs income shocks.•Caucasians and Asians share a rather high degree of insurance vs permanent shocks.•On the contrary, Latinos are the less insured group.•For Latinos, around 80% of a permanent income shock reverberates into consumption.