Precautionary Saving and the Notion of Ambiguity Prudence

Loïc Berger

Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: This letter develops a set of simple conditions under which an individual iswilling to save an extra amount of money due to the presence of ambiguity onits second period wealth. This extra precautionary saving motive is naturallyassociated to 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)
Pages: 11 p.
Date: 2013-11
New Economics Papers: this item is included in nep-mac, nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Precautionary saving and the notion of ambiguity prudence (2014)
Working Paper: Precautionary saving and the notion of ambiguity prudence (2014)
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