Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53165
Authors: 
Baiardi, Donatella
Manera, Matteo
Menegatti, Mario
Year of Publication: 
2011
Series/Report no.: 
Nota di lavoro // Fondazione Eni Enrico Mattei: Climate Change and Sustainable Development 62.2011
Abstract: 
This paper studies the empirical relationship between consumption and saving under two different sources of uncertainty: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the period 1965-2007. The results support the theoretical conclusions that both financial risk alone and the interaction between financial and environmental risks affect consumption. Moreover, we suggest a solution to some shortcomings which concern the empirical analysis performed with one-argument utility functions. Finally, we provide new estimates of indexes of relative risk aversion and relative prudence, and relative preference of environmental quality.
Subjects: 
Consumption
Precautionary Saving
Financial Risk
Environmental Risk
Prudence
Relative Risk Aversion
Uncertainty
JEL: 
D81
E21
Q50
Document Type: 
Working Paper

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