1,721,044 research outputs found
Prudence and Different Kinds of Prevention
No full textThis paper examines the effect of prudence on the optimal choices of advance and contemporaneous prevention in a context where the two kinds of prevention are used together. We show that, under some conditions on the probability of loss occurrence, prudence tends to increase advance prevention and to reduce contemporaneous prevention, while imprudence tends to do the opposite. Further results on the effect of prudence/imprudence on agents’ optimal behavior are provided
A New Interpretation for the Precautionary Saving Motive: A Note
No full textThis paper proposes a new interpretation for the precautionary saving motive: when future income is uncertain, agents increase saving in order to cause a reduction in the disutility due to uncertainty. Furthermore, the paper shows that the usual necessary and sufficient condition for precautionary saving is the condition ensuring this effect to occur and gives new insights into the relationship between risk aversion indexes and precautionary saving
Consumption and Uncertainty: A Panel Analysis in Italian Regions, M. Menegatti, in Applied Economics Letters (2007), vol.14(1);
No full text
Precautionary Saving in the Presence of Other Risks: A Comment
No full textCourbage and Rey (Econ Theory 32:417–424 2007) analyse precautionary saving in the presence of a background risk under specific sets of assumptions on the form of income risk and background risk. Three cases are examined: the case ofindependent risks, the case of Bernoulli-distributed random variables and the case ofrisk first-degree stochastic. For each of these cases Courbage and Rey compute the specific sets of conditions related to precautionary saving. This comment shows that some of their conclusions are partially incorrect
Tassazione sui profitti e scelte di investimento in presenza di un vincolo al pareggio del bilancio pubblico
No full textOptimal prevention and prudence in a two-period model
No full textThis work shows that, in a two-period framework, prudence has
a positive effect on optimal prevention. This conclusion is the
opposite to that obtained in a one-period framework [Eeckhoudt
L., Gollier C., 2005. The impact of prudence on optimal prevention.
Economic Theory 26, 989-994]. This is due to the opposite effect of
prevention on wealth in the period where the risk occurs
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