Precautionary saving and the notion of ambiguity prudence

This letter develops a set of simple conditions under which an individual is willing to save an extra amount of money due to the presence of ambiguity concerning his second period wealth. This extra precautionary saving motive is naturally associated with the notion of ambiguity prudence.

MoreLess

Year of publication:	2014
Authors:	Berger, Loïc
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 123.2014, 2, p. 248-251
Publisher:	Elsevier
Subject:	Ambiguity aversion \| Non-expected utility \| Uncertainty \| Saving \| Prudence

More details

Type of publication:	Article
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011041733