The researchers studied how people manage their money when faced with uncertain income. They found that a model with imperfect risk sharing can explain why people don't always save or spend money predictably. This model shows that consumption can be both sensitive and smooth in response to changes in income. By comparing two different models of information sharing, the researchers discovered that how people handle their money depends on whether they have secret access to credit. This helps us understand how people make financial decisions when they don't have all the information they need.