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.
|Publication status||Published - 17 Sep 2014|
|Name||Social Science Research Network|
- Precautionary saving
- Selden/Kreps-Porteus Preferences