Comparative Precautionary Saving under Higher-Order Risk and Recursive Utility
| Autor: | AJ A. Bostian, Christoph Heinzel |
|---|---|
| Přispěvatelé: | University of Tampere, Structures et Marché Agricoles, Ressources et Territoires (SMART-LERECO), AGROCAMPUS OUEST-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Imperial College London, European Project: 290693,EC:FP7:SSH,FP7-SSH-2011-1,FOODSECURE(2012), AGROCAMPUS OUEST, Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro)-Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), William J. Fulbright Foundation, ProdInra, Migration, Exploring the Future of Global Food and Nutrition Security - FOODSECURE - - EC:FP7:SSH2012-03-01 - 2017-02-28 - 290693 - VALID, Institut National de la Recherche Agronomique (INRA)-AGROCAMPUS OUEST, Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE)-INSTITUT AGRO Agrocampus Ouest, Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro)-Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement (Institut Agro) |
| Jazyk: | angličtina |
| Rok vydání: | 2017 |
| Předmět: |
Economics and Econometrics
Income risk media_common.quotation_subject precautionary saving preference coefficient Prudence [SHS]Humanities and Social Sciences Order (exchange) Accounting 0502 economics and business Econometrics Economics 050207 economics Preference (economics) Risk management Expected utility hypothesis 050205 econometrics media_common business.industry recursive utility 05 social sciences Risk effect [SHS.ECO]Humanities and Social Sciences/Economics and Finance higher-order risk prudence Business Management and Accounting (miscellaneous) [SHS] Humanities and Social Sciences precautionary premium business Finance |
| Zdroj: | 44th Seminar of the European Group of Risk and Insurance Economists (EGRIE) 44th Seminar of the European Group of Risk and Insurance Economists (EGRIE), Imperial College London, Sep 2017, London, United Kingdom. 27 p Geneva Risk and Insurance Review Geneva Risk and Insurance Review, Palgrave Macmillan, 2018, 43 (1), pp.95-114. ⟨10.1057/s10713-018-0030-2⟩ Geneva Risk and Insurance Review, 2018, 43 (1), pp.95-114. ⟨10.1057/s10713-018-0030-2⟩ |
| ISSN: | 1554-964X 1554-9658 |
| DOI: | 10.1057/s10713-018-0030-2⟩ |
| Popis: | International audience; Despite the importance of precautionary saving for life-cycle consumption, measuring and comparing the strength of precautionary saving motives have been conceptually restricted, under expected utility, to reactions to increases in income risk, also of higher orders, and, under recursive utility, to actuarially neutral risks added to income. This paper provides characterizations of comparative precautionary saving under recursive utility, analogous to Ross's (1981) comparative risk aversion, for increases in income risk and increases in risk on the saving return, also of higher orders. The characterizations involve comparisons in terms of precautionary premia. In addition, we show for these risk situations how the preferences underpinning precautionary saving can be measured and compared using preference coeffcients |
| Databáze: | OpenAIRE |
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