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The Effect of an Early Resolution of Uncertainty on Savings

Author

Listed:
  • Gollier, C.
  • Treich, N.

Abstract

We examine in this paper the effect of an early resolution of uncertainty on savings. We show that this effect is in general ambiguous. We provide necessary and sufficient conditions on the utility function which guarantee that an early resolution of uncertainty reduces current savings for various decision problem under uncertainty.

Suggested Citation

  • Gollier, C. & Treich, N., 1996. "The Effect of an Early Resolution of Uncertainty on Savings," Papers 96.408, Toulouse - GREMAQ.
    • Handle: RePEc:fth:gremaq:96.408
    as

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    More about this item

    Keywords

    SAVINGS; UNCERTAINTY; RISK; ECONOMETRICS;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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