Life-Cycle Preferences Revisited

An axiomatic construction for lifecycle preferences accounting for the finiteness and the randomness of life duration is provided. We emphasise the role of intertemporal correlation aversion and explain why multiplication preferences provide an interesting alternative to additive preferences, allowing to separate risk aversion from intertemporal elasticity of substitution. Implications regarding the shape of the optimal consumption profiles are discussed.

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Authors:	Bommier, Antoine
Institutions:	Department of Management, Technology and Economics (D-MTEC), Eidgenössische Technische Hochschule Zürich (ETHZ)
Subject:	Intertemporal choice \| Life-cycle models \| Multivariate risk aversion \| Uncertain lifetime

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number ETH-RC-12-001
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010614896