Precautionary saving and the notion of ambiguity prudence

Loïc Berger

Economics Letters, 2014, vol. 123, issue 2, 248-251

Abstract: This letter develops a set of simple conditions under which an individual is willing to save an extra amount of money due to the presence of ambiguity concerning his second period wealth. This extra precautionary saving motive is naturally associated with the notion of ambiguity prudence.

Keywords: Ambiguity aversion; Non-expected utility; Uncertainty; Saving; Prudence (search for similar items in EconPapers)
JEL-codes: D81 D91 E21 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (35)

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Related works:
Working Paper: Precautionary saving and the notion of ambiguity prudence (2014)
Working Paper: Precautionary Saving and the Notion of Ambiguity Prudence (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:123:y:2014:i:2:p:248-251

DOI: 10.1016/j.econlet.2014.02.019

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