Document Type

Other

Source Publication

Social Science Research Network

Publication Date

9-17-2014

Keywords

Precautionary saving, Prudence, Selden/Kreps-Porteus Preferences

Abstract

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 and risk preference effects.

DOI

10.2139/ssrn.2458316

Publisher Statement

Copyright © 2014 Social Science Electronic Publishing, Inc

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Full-text Version

Publisher’s Version

Recommended Citation

Li, J., & Wang, J. (2014). Precautionary saving with Selden/Kreps-Porteus preferences revisited. Social Science Research Network. Retrieved from http://dx.doi.org/10.2139/ssrn.2458316