Optimal Choices under Uncertainty: The Case of Two-Argument Utility Functions
AbstractThis paper presents a unified treatment for the analysis of two-argument utility functions with a random budget constraint. The way in which changes in both additive and multiplicative risk affect optimal choices has been analyzed prov iding intuitive economic explanations to third order magnitudes which usually appear in this kind of analysis. Two examples are given in t erms of optimal savings and labor supply under uncertainty. Finally, an application to taxation under uncertainty is given, where both the effects of increased tax progressivity and the rules for efficient t axation are analyzed. Copyright 1988 by Royal Economic Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 98 (1988)
Issue (Month): 391 (June)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- O'Donnell, Owen, 1995. "Labour supply and saving decisions with uncertainty over sickness," Journal of Health Economics, Elsevier, vol. 14(4), pages 491-504, October.
- Louis Eeckhoudt & Béatrice Rey & Harris Schlesinger, 2007.
"A Good Sign for Multivariate Risk Taking,"
INFORMS, vol. 53(1), pages 117-124, January.
- Thomas Aronsson & Sören Blomquist, 2003. "On Environmental Taxation under Uncertain Environmental Damage," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(2), pages 183-196, February.
- Nocetti, Diego & Napp, Clotilde & Jouini, Elyès, 2012. "Economic Consequences of Nth-Degree Risk Increases and Nth-Degree Risk Attitudes," Economics Papers from University Paris Dauphine 123456789/11094, Paris Dauphine University.
- Quiggin, John C., 1991.
"Contradictory Predictions On Supply Response Under Stabilization: A Reconciliation,"
Australian Journal of Agricultural Economics,
Australian Agricultural and Resource Economics Society, vol. 35(03), December.
- John C. Quiggin, 1991. "Contradictory Predictions On Supply Response Under Stabilization: A Reconciliation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 285-294, December.
- John Quiggin, 2001. "Production under Uncertainty and Choice under Uncertainty in the Emergence of Generalized Expected Utility Theory," Theory and Decision, Springer, vol. 51(2), pages 125-144, December.
- repec:ner:dauphi:urn:hdl:123456789/11094 is not listed on IDEAS
If references are entirely missing, you can add them using this form.