Precautionary saving and risk aversion. An anticipated utility approach

Uzi Segal; Avia Spivak; Joseph Zeira

doi:10.1016/0165-1765(88)90174-7

Precautionary saving and risk aversion. An anticipated utility approach

Uzi Segal^*, Avia Spivak, Joseph Zeira

^*Corresponding author for this work

Department of Economics

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

Yaari (1987) proved that within the anticipated utility framework, a risk averse decision maker will have precautionary saving regardless of the sign of the third derivative of his utility function. In this note we extend (a modification of) this result for an n-period model.

Original language	English
Pages (from-to)	223-227
Number of pages	5
Journal	Economics Letters
Volume	27
Issue number	3
DOIs	https://doi.org/10.1016/0165-1765(88)90174-7
State	Published - 1988

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abstract = "Yaari (1987) proved that within the anticipated utility framework, a risk averse decision maker will have precautionary saving regardless of the sign of the third derivative of his utility function. In this note we extend (a modification of) this result for an n-period model.",

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Precautionary saving and risk aversion. An anticipated utility approach

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