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Risk and saving in two-person households: More scope for precautionary saving

Apps, Patricia; Andrienko, Yuri; Rees, Ray - 2012

The existing literature suggests that when the saving decision of two-earner households under risk is analysed, standard results on the existence of precautionary saving no longer apply: precautionary saving is obtained if and only if very stringent conditions hold. This paper shows that when...

Persistent link: https://www.econbiz.de/10010287608

Earnings Uncertainty and Precautionary Saving

Guiso, Luigi; Jappelli, Tullio; Terlizzese, Daniele - C.E.P.R. Discussion Papers - 1992

consistent with the theory of precautionary saving and with decreasing prudence. Earnings uncertainty, however, explains only a …

Persistent link: https://www.econbiz.de/10005123641

Optimal saving in the presence of two small risks

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 respectively the direct effect of income risk and the...

Persistent link: https://www.econbiz.de/10005612404

On the relationship between absolute prudence and absolute risk aversion

Maggi, M. A.; Magnani, U.; Menegatti, M. - Facoltà di Economia, Università degli Studi di Parma - 2003

aversion (ARA) and of absolute prudence (AP) are connected. We get some general Propositions on the behaviour of the two …

Persistent link: https://www.econbiz.de/10005248549

Flexible Work Arrangements and Precautionary Behavior: Theory and Experimental Evidence

Orland, Andreas; Rostam-Afschar, Davud - 2020

In the past years, work time in many industries has become increasingly flexible opening up a new channel for intertemporal substitution. To study this, we set up a two-period model with wage uncertainty. This extends the standard savings model by allowing a worker to allocate a fixed time...

Persistent link: https://www.econbiz.de/10012175070

Flexible work arrangements and precautionary behaviour: Theory and experimental evidence

Orland, Andreas; Rostam-Afschar, Davud - 2020

In the past years, work time in many industries has become increasingly flexible opening up a new channel for intertemporal substitution. To study this, we set up a two-period model with wage uncertainty. This extends the standard saving model by allowing a worker to allocate a fixed time budget...

Persistent link: https://www.econbiz.de/10012196441

Moment characterization of higher-order risk preferences

Ebert, Sebastian - 2010

It is often said that prudence and temperance play key roles in aversion to negative skewness and kurtosis … preferences in terms of statistical moments. An implication is, for example, that prudence implies preference for distributions … kurtosis as defined by all even moments. We thus speak of the kurtosis robustness feature of prudence. Further, we show that …

Persistent link: https://www.econbiz.de/10010293372

Exploring the consistency of higher-order risk preferences

Haering, Alexander; Heinrich, Timo; Mayrhofer, Thomas - 2017

In this study we measure higher-order risk preferences and their consistency. We explore the role of country differences, the variation of stakes, and the framing of lotteries. We observe a robust dichotomous pattern of choice behavior in China, in the USA and in Germany. A large majority of...

Persistent link: https://www.econbiz.de/10011640783

Higher-order risk preferences in social settings : an experimental analysis

Heinrich, Timo; Mayrhofer, Thomas - 2014

We study higher-order risk preferences, i.e. prudence and temperance, next to risk aversion in social settings … decision maker. However, we do not observe an influence of social settings on prudence and temperance. Our results reveal that …Wir untersuchen neben Risikoaversion auch Risikopräferenzen höherer Ordnung, d.h. "Prudence" und "Temperance" in …

Persistent link: https://www.econbiz.de/10010417190

Precautionary Saving with Selden/Kreps-Porteus Preferences Revisited

Li, Jingyuan - 2015

This paper re-examines precautionary saving with general Selden/Kreps-Porteus preferences. The conditions existing in the literature are much more complex than in the Expected Utility framework. We obtain a simple and intuitive result on precautionary savings via disentangling time preference...

Persistent link: https://www.econbiz.de/10013033341