Article ID Journal Published Year Pages File Type
5062255 Economics Letters 2008 6 Pages PDF
Abstract

This paper analyzes consumption and savings decisions in a two-period consumption setting, supposing that future income is uncertain in the sense of Knight (Knight, F., 1921. Risk, uncertainty, and profit (Boston: Houghton Mi2in)). The results imply that uncertainty averse agents save more than risk averse agents.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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The effect of future income uncertainty in savings decision
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