Advanced Search
MyIDEAS: Login to save this paper or follow this series

Life-Cycle Preferences Revisited

Contents:

Author Info

Abstract

An axiomatic construction for lifecycle preferences accounting for the finiteness and the randomness of life duration is provided. We emphasize the role of intertemporal correlation aversion and explain why multiplica- tive preferences provide an interesting alternative to additive preferences, allowing to separate risk aversion from intertemporal elasticty of substitu- tion. Implications regarding the shape of the optimal consumption pro?files are discussed.

Download Info

If 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.
File URL: http://www.cer.ethz.ch/research/WP-11-155.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich in its series CER-ETH Economics working paper series with number 11/155.

as in new window
Length: 49 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:eth:wpswif:11-155

Contact details of provider:
Postal: Zürichbergstrasse 18, ZUE, CH-8092 Zürich
Phone: +41 44 632 03 87
Fax: +41 44 632 13 62
Email:
Web page: http://www.cer.ethz.ch
More information through EDIRC

Related research

Keywords: Intertemporal choice; Life-cycle models; Multivariate risk aver- sion; Uncertain lifetime.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Antoine Bommier & Arnold Chassagnon & François Legrand, 2010. "Comparative Risk Aversion: A Formal Approach with Applications to Savings Behaviors," Working Papers hal-00451281, HAL.
  2. Peart, Sandra J. & Levy, David M., 2003. "Denying Human Homogeneity: Eugenics & The Making of Post-Classical Economics," Journal of the History of Economic Thought, Cambridge University Press, Cambridge University Press, vol. 25(03), pages 261-288, September.
  3. repec:ebl:ecbull:v:4:y:2007:i:29:p:1-8 is not listed on IDEAS
  4. Antoine Bommier, 2010. "Portfolio Choice under Uncertain Lifetime," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(1), pages 57-73, 02.
  5. Raouf BOUCEKKINE & David de la Croix & Omar LICANDRO, 2002. "Early mortality declines at the dawn of modern growth," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2002014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Louis Eeckhoudt & Béatrice Rey & Harris Schlesinger, 2006. "A Good Sign for Multivariate Risk Taking," CESifo Working Paper Series 1796, CESifo Group Munich.
  7. Antoine Bommier & Jean-Charles Rochet, 2006. "Risk Aversion and Planning Horizons," Journal of the European Economic Association, MIT Press, MIT Press, vol. 4(4), pages 708-734, 06.
  8. Antoine Bommier & Marie-Louise Leroux & Jean-Marie Lozachmeur, 2010. "On the Public Economics of Annuities with Differential Mortality," CER-ETH Economics working paper series, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich 10/135, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  9. David E. Bloom & David Canning & Bryan Graham, 2002. "Longevity and Life Cycle Savings," NBER Working Papers 8808, National Bureau of Economic Research, Inc.
  10. Feigenbaum, James, 2008. "Can mortality risk explain the consumption hump?," Journal of Macroeconomics, Elsevier, Elsevier, vol. 30(3), pages 844-872, September.
  11. repec:reg:rpubli:282 is not listed on IDEAS
  12. Antoine Bommier, 2006. "Uncertain Lifetime And Intertemporal Choice: Risk Aversion As A Rationale For Time Discounting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1223-1246, November.
  13. Antoine Bommier, 2008. "Rational Impatience ?," Working Papers hal-00441880, HAL.
  14. Steffen Andersen & Glenn W. Harrison & Morten Lau & Elisabet E. Rutstroem, 2011. "Intertemporal Utility and Correlation Aversion," Working Papers 2011_03, Durham University Business School.
  15. van der Ploeg, Frederick, 1993. "A Closed-Form Solution for a Model of Precautionary Saving," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(2), pages 385-95, April.
  16. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195102680, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Antoine Bommier, . "Mortality Decline, Impatience and Aggregate Wealth Accumulation with Risk-Sensitive Preferences," Working Papers, ETH Zurich, Chair of Systems Design ETH-RC-14-006, ETH Zurich, Chair of Systems Design.
  2. Antoine Bommier & François Grand, 2014. "Too risk averse to purchase insurance?," Journal of Risk and Uncertainty, Springer, Springer, vol. 48(2), pages 135-166, April.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eth:wpswif:11-155. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.