Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171577
Authors: 
Bommier, Antoine
Chassagnon, Arnold
Le Grand, François
Year of Publication: 
2010
Series/Report no.: 
Economics Working Paper Series 10/134
Abstract: 
We consider a formal approach to comparative risk aversion and applies it to intertemporal choice models. This allows us to ask whether standard classes of utility functions, such as those inspired by Kihlstrom and Mirman [15], Selden [26], Epstein and Zin [9] and Quiggin [24] are well-ordered in terms of risk aversion. Moreover, opting for this model-free approach allows us to establish new general results on the impact of risk aversion on savings behaviors. In particular, we show that risk aversion enhances precautionary savings, clarifying the link that exists between the notions of prudence and risk aversion.
Subjects: 
Risk aversion
Savings behaviors
Precautionary savings
JEL: 
D11
D81
D91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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