On the conditions for precautionary saving

• 成果类型: Article
• 署名作者: Menegatti, M
• 署名单位: University of Pavia
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2000.2751
• 发表日期: 2001
• 页码: 189-193
• 关键词: Precautionary saving; Utility function; risk aversion; prudence

摘要

This paper shows that if the signs of the first three derivatives of the utility function are assumed to be invariant in the consumption level, then nonsatiation and risk aversion are sufficient conditions for the presence of precautionary saving. Moreover, a similar set of assumptions ensures that the necessary conditions for decreasing absolute risk aversion and for decreasing absolute prudence are automatically satisfied. (C) 2001 Academic Press.