Title of article
Changesinriskandthedemandforsaving$
Author/Authors
Louis Eeckhoudt، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2008
Pages
8
From page
1329
To page
1336
Abstract
How doesriskaffectsaving?Empiricalworktypicallyexaminestheeffectsofdetectible
differences inriskwithinthedata.Howthesedifferencesaffectsavingintheoretical
modelsdependsonthemetriconeusesforrisk.Forlabor-incomerisk,second-degree
increases inriskrequireprudencetoinduceincreasedsavingdemand.However,
prudenceisnotnecessaryforfirst-degreeriskincreasesandnotsufficientforhigher-
degreeriskincreases.Forincreasesininterest-raterisk,aprecautionaryeffectanda
substitutioneffectneedtobecompared.Thispaperprovidesnecessaryandsufficient
conditionsonpreferencesforan Nth-degreechangeinrisktoincreasesaving
Keywords
Precautionary savingPrudenceStochasticdominanceTemperance
Journal title
Journal of Monetary Economics
Serial Year
2008
Journal title
Journal of Monetary Economics
Record number
846252
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