Menegatti, M. - Facoltà di Economia, Università degli Studi di Parma - 2008
We examine optimal saving in the presence of two small risks: income risk and a background risk. First, we compute the … necessary and sufficient condition for a positive precautionary saving, showing that it depends on two terms capturing … sufficient condition for a positive extra-saving due to the contemporaneous presence of the two risks. We show that this …