Deck, Cary; Schlesinger, Harris - In: Review of Economic Studies 77 (2010) 4, pp. 1403-1420
Precautionary saving has been linked to the property of prudence, and the property of temperance has been used to show how the presence of an unavoidable risk affects one's behaviour towards a second risk. These two higher order risk effects also play key roles in aversion to negative skewness...