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

Jianli WANG, Jingyuan LI

Research output: Journal PublicationsJournal Article (refereed)

3 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

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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

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