Optimal Saving with Additive and Multiplicative Background Risk

Artige, Lionel
(2004)

Files

2004-30.pdf
  • Open Access
  • Adobe PDF
  • 127.75 KB
Download

Details

Authors
  • Artige, Lionel
    Author
Abstract
We study optimal saving when incomes are certain and risk bears on consumption. A key finding is that, with CARA utility and additive uncertain consumption, or CRRA utility and multiplicative consumption, risk-averse individuals do not form precautionary saving as in the standard theory of saving under uncertainty.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Artige, L. (2004). Optimal Saving with Additive and Multiplicative Background Risk (ECON Working Papers 2004/59). https://hdl.handle.net/2078.5/130254