Article

Precautionary saving and the notion of ambiguity prudence

Loïc Berger

Résumé

This letter develops a set of simple conditions under which an individual is willing to save an extra amount of money due to the presence of ambiguity concerning his second period wealth. This extra precautionary saving motive is naturally associated with the notion of ambiguity prudence.

Mots-clés

Ambiguity aversion; Non-expected utility; Uncertainty; Saving; Prudence;

Codes JEL

  • D81: Criteria for Decision-Making under Risk and Uncertainty
  • D91: Intertemporal Household Choice • Life Cycle Models and Saving
  • E21: Consumption • Saving • Wealth

Référence

Loïc Berger, « Precautionary saving and the notion of ambiguity prudence », Economics Letters, Elsevier, vol. 123, n° 2, mai 2014, p. 248–251.

Voir aussi

Publié dans

Economics Letters, Elsevier, vol. 123, n° 2, mai 2014, p. 248–251