Precautionary saving in the large: nth degree deteriorations in future income

Motivated by Eeckhoudt and Schlesinger’s (2008) general characterization of the precautionary saving motive against nth degree deteriorations in future income, this note generalizes the comparative precautionary premium analysis of Kimball (1990) for 2nd degree risk increases in future income to a comparative precautionary premium analysis for nth degree deteriorations in future income.

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Year of publication:	2014
Authors:	Liu, Liqun
Published in:	Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 52.2014, C, p. 169-172
Publisher:	Elsevier
Subject:	Precautionary saving \| Precautionary premium \| Stochastic dominance \| Higher degree risk increase \| Mean preserving stochastic dominance

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010785385