Risk Aversion and Precautionary Savings in Dynamic Settings
研究了面临收入不确定性的无限期存活代理人的储蓄行为，证明风险规避会明确增加储蓄，该结论适用于一般收入不确定性过程。
We study the saving behavior of infinitely long-lived agents who face income uncertainty and deterministic interest rates. Using monotone recursive preferences, we prove that risk aversion unambiguously increases savings. The result accounts for possibly binding borrowing constraints and holds for very general specification of income uncertainty, which can follow any kind of stochastically monotone process. Codes are available at https://doi.org/10.1287/mnsc.2017.2959 . This paper was accepted by Han Bleichrodt, decision analysis.