Connecting possibilistic prudence and optimal saving
| Autor: | Irina Georgescu, Ana Maria Lucia Casademunt |
|---|---|
| Rok vydání: | 2013 |
| Předmět: |
Statistics and Probability
Computer Networks and Communications Computer science media_common.quotation_subject Prudence lcsh:Technology Artificial Intelligence Fuzzy number Theory theory Equivalence (measure theory) Expected utility hypothesis Possibility theory media_common saving precautionary Precautionary Possibility Saving lcsh:T IJIMAI possibility Computer Science Applications Signal Processing Computer Vision and Pattern Recognition Mathematical economics |
| Zdroj: | Brújula Universidad Loyola Andalucía International Journal of Interactive Multimedia and Artificial Intelligence, Vol 2, Iss 4, Pp 38-45 (2013) Re-Unir. Archivo Institucional de la Universidad Internacional de La Rioja instname |
| Popis: | In this paper we study the optimal saving problem in the framework of possibility theory. The notion of possibilistic precautionary saving is introduced as a measure of the way the presence of possibilistic risk (represented by a fuzzy number) influences a consumer in establishing the level of optimal saving. The notion of prudence of an agent in the face of possibilistic risk is defined and the equivalence between the prudence condition and a positive possibilistic precautionary saving is proved. Some relations between possibilistic risk aversion, prudence and possibilistic precautionary saving were established. inequality is proved. In Section 3 the possibilistic two-period model of precautionary saving is studied. The consumer is represented by two utility functions u and v and the risk, present in the second period, is described by a fuzzy number. The expected lifetime utility of the model is defined with the help of the notion of possibilistic expected utility. The main introduced notion is possibilistic precautionary saving. It measures the changes on optimal saving produced by the presence of risk in the second period. If this indicator has a positive value then by adding the risk the consumer will choose a greater level of optimal saving. The main result of the section characterizes the positivity of possibilistic precautionary saving by the condition |
| Databáze: | OpenAIRE |
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