It is your responsibility to brief your Minister of Finance on how people deal with these shocks. In addition, she is interested in potential policies that can be implemented to help people deal with risks.

You must, at least, cover the following:

Explain how we can measure the extent to which people are able to deal with shocks, the motivation behind this measure, and what the empirical literature tells us about peoples ability to withstand shocks.
Discuss the four possible ways that people can self-insure and provide empirical results on each (one of these the readings only cover second-hand).
What are possible policies that can help people deal better with risks and what do we know about their effectiveness.
Make sure you draw on the readings and provide specific examples and numbers. The more specific you are, the better. For example, when discussing effectiveness of potential policies make sure you explain not only whether a given policy has been found to be effective or not, but also what may be behind the findings. You are welcome to use additional literature, but you are not required to.
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Added on 07.12.2015 17:55
These are the two main sources.