Braun, HelgeHelgeBraunKoeniger, WinfriedWinfriedKoeniger2023-04-132023-04-132007-06-21https://www.alexandria.unisg.ch/handle/20.500.14171/8052610.1007/s10713-007-0001-5Durables like cars or houses are a substantial component in the balance sheets of households. These durables are exposed to risk and can be insured in the market. We build a dynamic model in which agents have three possibilities to cope with the risk exposure of the durable stock: (i) purchase of market insurance, (ii) buffer-stock saving of the riskless asset or (iii) adjustment of the durable stock. We calibrate our model to the US economy and find a small role for market insurance.enMarket InsuranceDynamic Modeljournal article