La notion économique de prudence. Origine et développements récents

David Crainich and Louis Eeckhoudt

Revue économique, 2005, vol. 56, issue 5, 1021-1032

Abstract: The formal definition of the term « prudence » in economics is due to Kimball [1990]. Since then the notion of prudence is linked to the choice of a level of precautionary saving while risk aversion remains perceived as a preference towards a risky situation. In this paper ? after a survey of other publications than that of Kimball ? we show that prudence can also be interpreted as a preference towards risk. We also show that prudence can be used to analyse insurance decisions as well as saving ones. Classification JEL : D81

JEL-codes: D81 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (8)

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Working Paper: La notion économique de prudence: origine et développements récents (2005)
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