Precautionary saving with Selden/Kreps-Porteus preferences revisited

Jingyuan LI, Jianli WANG

Research output: Other contributionOther outputs

Abstract

This paper re-examines precautionary saving with general Selden/Kreps-Porteus preferences. The conditions existing in the literature are much more complex than in the Expected Utility framework. We obtain a simple and intuitive result on precautionary savings via disentangling time preference and risk preference effects.
Original languageEnglish
DOIs
Publication statusPublished - 17 Sep 2014

Publication series

NameSocial Science Research Network

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Keywords

  • Precautionary saving
  • Prudence
  • Selden/Kreps-Porteus Preferences

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