We show how optimal saving in a two-period model is affected when prudence and riskaversion of the underlying utility … function change. Increasing prudence alone will induce higher savings only if, for certain combinations of the interest rate …

We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility … function change. Increasing prudence alone will induce higher savings only if, for certain combinations of the interest rate …

We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility … aversion that affect the distribution between the periods must also be taken into account. -- Prudence ; risk aversion ; saving … function change. Increasing prudence alone will induce higher savings only if, for certain combinations of the interest rate …

risk aversion enhances precautionary savings, clarifying the link that exists between the notions of prudence and risk …

This paper tests how subjects behave in an intertemporal consumption/saving experiment when borrowing is allowed and … whether subjects treat debt differently than savings. Two treatments create environments where either saving or borrowing is … found suggesting that subjects over-consume when saving is necessary for optimal consumption. …

Building on the isomorphism between the theories of risk aversion and precautionary saving, an objective index of … framework for the monotone relation between risk aversion and prudence results, in which absence of level effects and stochastic … benchmark framework in terms of level effects which preserve the positive effect of absolute risk aversion on absolute prudence …

This paper tests how subjects behave in an intertemporal consumption/saving experiment when borrowing is allowed and … whether subjects treat debt differently than savings. Two treatments create environments where either saving or borrowing is … found suggesting that subjects over-consume when saving is necessary for optimal consumption. …

is shown that saving increases as EIS increases. Similarly, saving increases as the coefficient of risk aversion … because saving is more responsive to changes in EIS than changes in risk aversion …

This paper examines preferences towards particular classes of lottery pairs. We show how concepts such as prudence and …