Advanced Search
MyIDEAS: Login

Life-Cycle Preferences Revisited

Contents:

Author Info

  • Antoine Bommier

    ()

Abstract

An axiomatic construction for lifecycle preferences accounting for the finiteness and the randomness of life duration is provided. We emphasise the role of intertemporal correlation aversion and explain why multiplication preferences provide an interesting alternative to additive preferences, allowing to separate risk aversion from intertemporal elasticity of substitution. Implications regarding the shape of the optimal consumption profiles 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: ftp://web.sg.ethz.ch/RePEc/stz/wpaper/pdf/ETH-RC-12-001.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ETH Zurich, Chair of Systems Design in its series Working Papers with number ETH-RC-12-001.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:stz:wpaper:eth-rc-12-001

Contact details of provider:
Postal: ETH Zentrum KPL F 38.1, Kreuzplatz 5, 8032 Zürich
Phone: +41 1 632 57 18
Fax: +41 1 632 10 47
Web page: http://web.sg.ethz.ch/wps
More information through EDIRC

Related research

Keywords: Intertemporal choice; Life-cycle models; Multivariate risk aversion; Uncertain lifetime;

Other versions of this item:

Find related papers by JEL classification:

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. Raouf Boucekkine & David de la Croix & Omar Licandro, 2003. "Early Mortality Declines at the Dawn of Modern Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 401-418, 09.
  2. Steffen Andersen & Glenn W. Harrison & Morten Lau & Elisabet E. Rutstroem, 2011. "Intertemporal Utility and Correlation Aversion," Working Papers 2011_03, Durham University Business School.
  3. BOMMIER, Antoine & LEROUX, Marie- Louise & LOZACHMEUR, Jean- Marie, 2009. "On the public economics of annuities with differential mortality," CORE Discussion Papers 2009030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Le Grand, François & Chassagnon, Arnold & Bommier, Antoine, 2012. "Comparative Risk Aversion: A Formal Approach with Applications to Saving Behaviors," Economics Papers from University Paris Dauphine 123456789/4434, Paris Dauphine University.
  5. Antoine Bommier, 2008. "Rational Impatience ?," Working Papers hal-00441880, HAL.
  6. Antoine Bommier, 2001. "Uncertain lifetime and intertemporal choice : risk aversion as a rationale for time discounting," Research Unit Working Papers 0108, Laboratoire d'Economie Appliquee, INRA.
  7. Bommier, Antoine & Rochet, Jean-Charles, 2003. "Risk Aversion and Planning Horizon," IDEI Working Papers 204, Institut d'Économie Industrielle (IDEI), Toulouse, revised Nov 2004.
  8. David E. Bloom & David Canning & Bryan Graham, 2003. "Longevity and Life-cycle Savings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 319-338, 09.
  9. repec:reg:rpubli:282 is not listed on IDEAS
  10. repec:ebl:ecbull:v:4:y:2007:i:29:p:1-8 is not listed on IDEAS
  11. van der Ploeg, Frederick, 1993. "A Closed-Form Solution for a Model of Precautionary Saving," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 385-95, April.
  12. 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.
  13. EECKHOUDT, louis & REY, Béatrice & SCHLESINGER, Harris, . "A good sign for multivariate risk taking," CORE Discussion Papers RP -1900, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  14. 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, vol. 25(03), pages 261-288, September.
  15. Feigenbaum, James, 2008. "Can mortality risk explain the consumption hump?," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 844-872, September.
  16. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
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-RC-14-006, ETH Zurich, Chair of Systems Design.
  2. Antoine Bommier, 2014. "Mortality Decline, Impatience and Aggregate Wealth Accumulation with Risk-Sensitive Preferences," CER-ETH Economics working paper series 14/194, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.

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:stz:wpaper:eth-rc-12-001. 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: (Claudio J. Tessone).

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.