| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 973290 | Mathematical Social Sciences | 2009 | 5 Pages |
Abstract
This work shows that, in a two-period framework, prudence has a positive effect on optimal prevention. This conclusion is the opposite to that obtained in a one-period framework [Eeckhoudt L., Gollier C., 2005. The impact of prudence on optimal prevention. Economic Theory 26, 989–994]. This is due to the opposite effect of prevention on wealth in the period where the risk occurs.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Mario Menegatti,