,byshowingthatinbothcasestheeffectsspringfromtheconcavity in the consumption function which either uncertainty or constraints can induce. We further show that consumption function … constraints, consumption function, uncertainty, stochastic income, precautionarysaving JEL Classification Codes: C6,D91,E21 …: Prudence is induced by concavity of the consumption function. Since a constraint causes consumption concavity around the point …

showing that in both cases the effects spring from the concavity in the consumption function which either uncertainty or … constraints can induce. We further show that consumption function concavity, once created, propagates back to consumption …

Hypothesis (AIH) for the case of Nigeria and thus presents a consumption function for Nigeria for the period 1970 to 2011 …