Lattice-based monotone comparative statics on saving with Selden/Kreps-Porteus preferences

This study examines saving with general Selden/Kreps-Porteus preferences. It shows that lattice-based monotone comparative statics can be used to weaken the existing sufficient conditions in a two-period model with Kreps-Porteus preferences for prudence and for a definitive relationship between risk aversion and the strength of the saving motive. The effects of a change in risk and a change in initial wealth are also examined.