Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences

Jianli WANG; Jingyuan LI

doi:10.1016/j.jmateco.2016.06.004

Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences

Jianli WANG^*, Jingyuan LI

^*Corresponding author for this work

Department of Finance and Insurance

Research output: Journal Publications › Journal Article (refereed) › peer-review

4 Citations (Scopus)

Abstract

This study examines saving with general Selden/Kreps–Porteus preferences. It shows that lattice-based monotone comparative statics can be used to weaken the existing sufficient conditions in a two-period model with Kreps–Porteus preferences for prudence and for a definitive relationship between risk aversion and the strength of the saving motive. The effects of a change in risk and a change in initial wealth are also examined.

Original language	English
Pages (from-to)	132-138
Number of pages	7
Journal	Journal of Mathematical Economics
Volume	65
Early online date	28 Jun 2016
DOIs	https://doi.org/10.1016/j.jmateco.2016.06.004
Publication status	Published - Aug 2016

Bibliographical note

The research described here was supported by the National Natural Science Foundation of China with Grant Numbers 71401074 and 71461009; General Research Fund of the Hong Kong Research Grants Council under Research Project No. LU13500814; the Faculty Research Grant of Lingnan University under Research Project No. DB15A2 and No. DB16A1.

Keywords

Monotone comparative statics
Prudence
Saving
Selden/Kreps–Porteus preferences

Access to Document

10.1016/j.jmateco.2016.06.004

Cite this

@article{42d3429e51fa4af3baf372680f718292,

title = "Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences",

abstract = "This study examines saving with general Selden/Kreps–Porteus preferences. It shows that lattice-based monotone comparative statics can be used to weaken the existing sufficient conditions in a two-period model with Kreps–Porteus preferences for prudence and for a definitive relationship between risk aversion and the strength of the saving motive. The effects of a change in risk and a change in initial wealth are also examined.",

keywords = "Monotone comparative statics, Prudence, Saving, Selden/Kreps–Porteus preferences",

author = "Jianli WANG and Jingyuan LI",

note = "The research described here was supported by the National Natural Science Foundation of China with Grant Numbers 71401074 and 71461009; General Research Fund of the Hong Kong Research Grants Council under Research Project No. LU13500814; the Faculty Research Grant of Lingnan University under Research Project No. DB15A2 and No. DB16A1.",

year = "2016",

month = aug,

doi = "10.1016/j.jmateco.2016.06.004",

language = "English",

volume = "65",

pages = "132--138",

journal = "Journal of Mathematical Economics",

issn = "0304-4068",

publisher = "Elsevier",

}

TY - JOUR

T1 - Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences

AU - WANG, Jianli

AU - LI, Jingyuan

N1 - The research described here was supported by the National Natural Science Foundation of China with Grant Numbers 71401074 and 71461009; General Research Fund of the Hong Kong Research Grants Council under Research Project No. LU13500814; the Faculty Research Grant of Lingnan University under Research Project No. DB15A2 and No. DB16A1.

PY - 2016/8

Y1 - 2016/8

N2 - This study examines saving with general Selden/Kreps–Porteus preferences. It shows that lattice-based monotone comparative statics can be used to weaken the existing sufficient conditions in a two-period model with Kreps–Porteus preferences for prudence and for a definitive relationship between risk aversion and the strength of the saving motive. The effects of a change in risk and a change in initial wealth are also examined.

AB - This study examines saving with general Selden/Kreps–Porteus preferences. It shows that lattice-based monotone comparative statics can be used to weaken the existing sufficient conditions in a two-period model with Kreps–Porteus preferences for prudence and for a definitive relationship between risk aversion and the strength of the saving motive. The effects of a change in risk and a change in initial wealth are also examined.

KW - Monotone comparative statics

KW - Prudence

KW - Saving

KW - Selden/Kreps–Porteus preferences

UR - http://www.scopus.com/inward/record.url?scp=84978786030&partnerID=8YFLogxK

U2 - 10.1016/j.jmateco.2016.06.004

DO - 10.1016/j.jmateco.2016.06.004

M3 - Journal Article (refereed)

SN - 0304-4068

VL - 65

SP - 132

EP - 138

JO - Journal of Mathematical Economics

JF - Journal of Mathematical Economics

ER -

Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Explain Two Puzzles in Macro-Finance by Higher-Order Risk Attitudes and Background Risks (運用高階風險規避和背景風險的方法研究兩個宏觀金融之謎)

Cite this

Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Projects

Explain Two Puzzles in Macro-Finance by Higher-Order Risk Attitudes and Background Risks (運用高階風險規避和背景風險的方法研究兩個宏觀金融之謎)

Cite this