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

Jianli WANG, Jingyuan LI

Research output: Journal PublicationsJournal Article (refereed)

2 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 languageEnglish
Pages (from-to)132-138
Number of pages7
JournalJournal of Mathematical Economics
Volume65
Early online date28 Jun 2016
DOIs
Publication statusPublished - Aug 2016

Fingerprint

Comparative Statics
Risk Aversion
Monotone
Sufficient Conditions
Model
Relationships
Monotone comparative statics
Wealth
Prudence
Risk aversion

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

Cite this

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Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences. / WANG, Jianli; LI, Jingyuan.

In: Journal of Mathematical Economics, Vol. 65, 08.2016, p. 132-138.

Research output: Journal PublicationsJournal Article (refereed)

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