The Effect of an Early Resolution of Uncertainty on Savings.

We examine in this paper the effect of an early resolution of uncertainty on savings. We show that this effect is in general ambiguous. We provide necessary and sufficient conditions on the utility function which guarantee that an early resolution of uncertainty reduces current savings for various decision problem under uncertainty.

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Year of publication:	1996
Authors:	Gollier, C. ; Treich, N.
Institutions:	Groupe de Recherche en Économie Mathématique et Quantitative (GREMAQ), Toulouse School of Economics (TSE)
Subject:	SAVINGS \| UNCERTAINTY \| RISK \| ECONOMETRICS

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Series:	Toulouse - GREMAQ.
Type of publication:	Book / Working Paper
Notes:	17 pages
Classification:	C00 - Mathematical and Quantitative Methods. General ; D80 - Information and Uncertainty. General ; D81 - Criteria for Decision-Making under Risk and Uncertainty ; E20 - Consumption, Saving, Production, Employment, and Investment. General ; E21 - Consumption; Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005639379