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The Effect of an Early Resolution of Uncertainty on Savings

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Author Info
Gollier, C.
Treich, N.

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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.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 96.408.

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Length: 17 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:gremaq:96.408

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Related research
Keywords: SAVINGS; UNCERTAINTY; RISK; ECONOMETRICS;

Find related papers by 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 - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

Statistics
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