Precautionary Saving and Ambiguity
نویسنده
چکیده
This paper considers a two period consumption-saving model in which future income is uncertain. If the future income is also ambiguous, in the sense of having multiple priors, then ambiguity attitudes also a¤ect the saving decision. Unlike one-period decision problems, ambiguity attitude does more than just distort the probabilities of the various priors. It also distorts the relative importance of second-period consumption, which in turn a¤ects precautionary demand for saving. These e¤ects can either reinforce or counteract the well known e¤ects based upon risk attitudes in expected utility models. JEL classi cation numbers: D81, D91, G11
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تاریخ انتشار 2014