Saving under rank-dependent utility

In this note we use the rank-dependent utility (RDU) model to analyze saving decisions. The RDU model enables us to separate the effects of pessimism and optimism on saving from that of concavity of the utility function. While pessimism induces more saving, the importance of this effect is shown to depend upon properties of the utility function such as prudence and temperance. Copyright Springer-Verlag Berlin/Heidelberg 2005

MoreLess

Year of publication:	2005
Authors:	Bleichrodt, Han ; Eeckhoudt, Louis
Published in:	Economic Theory. - Springer. - Vol. 25.2005, 2, p. 505-511
Publisher:	Springer
Subject:	Rank-dependent utility \| Saving \| Prudence \| Temperance

More details

Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005371177