Article ID Journal Published Year Pages File Type
966083 Journal of Macroeconomics 2008 11 Pages PDF
Abstract
In a model where agents use their labour/education choice to adjust their consumption profile over time, I show that the impact of uncertainty on growth depends, critically, on agents' attitudes towards risk, reflected by the coefficient of relative risk aversion. In this respect, the well known result from the literature on 'saving under uncertainty' can be extended into a broader context, whereby the intertemporal profile of consumption is determined via human capital accumulation rather than saving and physical capital investment.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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