Title

Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences

Document Type

Journal article

Source Publication

Journal of Mathematical Economics

Publication Date

8-1-2016

Volume

65

First Page

132

Last Page

138

Publisher

Elsevier B.V.

Keywords

Monotone comparative statics, Prudence, Saving, Selden/Kreps–Porteus preferences

Abstract

This study examines saving with general Selden/Kreps–Porteus preferences. It shows that lattice-based monotone comparative statics can be used to weaken the existing sufficient conditions in a two-period model with Kreps–Porteus preferences for prudence and for a definitive relationship between risk aversion and the strength of the saving motive. The effects of a change in risk and a change in initial wealth are also examined.

DOI

10.1016/j.jmateco.2016.06.004

Print ISSN

03044068

E-ISSN

18731538

Funding Information

The research described here was supported by the National Natural Science Foundation of China with Grant Numbers 71401074 and 71461009; General Research Fund of the Hong Kong Research Grants Council under Research Project No. LU13500814; the Faculty Research Grant of Lingnan University under Research Project No. DB15A2 and No. DB16A1. {71401074, 71461009, LU13500814, DB15A2, DB16A1}

Publisher Statement

Copyright © 2016 Elsevier B.V. Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Wang, J., & Li, J. (2016). Lattice-based monotone comparative statics on saving with Selden/Kreps–Porteus preferences. Journal of Mathematical Economics, 65, 132-138. doi: 10.1016/j.jmateco.2016.06.004

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