Carroll, Chris (contributor); Kimball, Miles S. (contributor) - 2001 - [Elektronische Ressource]
illustratesthesimplepointthatthemagnitudeofprecautionarysavingis
related to the degree of convexity of the marginal value function. Jensen’s inequality
guaranteesthatif V
prime
t+1 …
andallhigher
levelsofwealth,(26)clearlyholdswithequality. Wecansummarizebysayingthatthe
inequality (26)which expresses theresult …
notasmeaningful,sinceitgoesbeyondtheblisspoint. Second,since u
primeprimeprime
(·)=0,strict
inequality between the prudence of
ˆ
V and …