1 mars 2019
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.1287/mnsc.2017.2959
Antoine Bommier et al., « Risk Aversion and Precautionary Savings in Dynamic Settings », HAL-SHS : économie et finance, ID : 10.1287/mnsc.2017.2959
We study the saving behavior of infinitely long-lived agents who face income uncertainty and deterministic interest rates. Using monotone recursive preferences, we prove that risk aversion unambiguously increases savings. The result accounts for possibly binding borrowing constraints and holds for very general specification of income uncertainty, which can follow any kind of stochastically monotone process.