On the substitution between saving and prevention

Mario Menegatti and F. Rebessi

No 2010-EP03, Economics Department Working Papers from Department of Economics, Parma University (Italy)

Abstract: This work makes a joint analysis of prevention and saving decisions. First we determine the optimal levels of the two variables and we analyze substitution between them. Second we provide some comparative statics results in order to determine the effects on optimal saving and prevention of changes in exogenous present and future wealth and in possible future loss. Finally we introduce insurance into the model and we extend the separation result, derived in the literature which studies the substitution between insurance and saving, to the case where prevention is considered too.

Keywords: Prevention; Saving; Insurance (search for similar items in EconPapers)
JEL-codes: D81 E21 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2010
New Economics Papers: this item is included in nep-ias
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Journal Article: On the substitution between saving and prevention (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:par:dipeco:2010-ep03

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