Life-Cycle Preferences Revisited

Antoine Bommier

No 11/155, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: An axiomatic construction for lifecycle preferences accounting for the finiteness and the randomness of life duration is provided. We emphasize the role of intertemporal correlation aversion and explain why multiplica- tive preferences provide an interesting alternative to additive preferences, allowing to separate risk aversion from intertemporal elasticty of substitu- tion. Implications regarding the shape of the optimal consumption pro?files are discussed.

Keywords: Intertemporal choice; Life-cycle models; Multivariate risk aver- sion; Uncertain lifetime. (search for similar items in EconPapers)
JEL-codes: D91 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2011-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: LIFE-CYCLE PREFERENCES REVISITED (2013)
Working Paper: Life-Cycle Preferences Revisited
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