Precautionary saving in the large: nth degree deteriorations in future income

Motivated by Eeckhoudt and Schlesinger's (2008) general characterization of the precautionary saving motive against nth degree deteriorations in future income, this note generalizes the comparative precautionary premium analysis of Kimball (1990) for 2nd degree risk increases in future income to a comparative precautionary premium analysis for nth degree deteriorations in future income.