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Saving motives and multivariate precautionary premia

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  • Christophe Courbage

Abstract

This paper extends the concept of precautionary premium to a multivariate setting so as to measure the intensity of the precautionary saving motive to protect against multivariate risks. This makes it possible to disentangle and to link the various motives of precautionary saving depending on the configuration of the risks the individual wants to protect against. Copyright Springer-Verlag Italia 2014

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  • Christophe Courbage, 2014. "Saving motives and multivariate precautionary premia," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 37(2), pages 385-391, October.
  • Handle: RePEc:spr:decfin:v:37:y:2014:i:2:p:385-391
    DOI: 10.1007/s10203-013-0149-7
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    References listed on IDEAS

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    9. Christophe Courbage & Béatrice Rey, 2007. "Precautionary saving in the presence of other risks," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(2), pages 417-424, August.
    10. Christophe Courbage & Béatrice Rey, 2007. "Precautionary saving in the presence of other risks," Post-Print halshs-03353387, HAL.
    11. Michael G. Palumbo, 1999. "Uncertain Medical Expenses and Precautionary Saving Near the End of the Life Cycle," Review of Economic Studies, Oxford University Press, vol. 66(2), pages 395-421.
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    Cited by:

    1. Crainich, David & Eeckhoudt, Louis & Courtois, Olivier Le, 2020. "Intensity of preferences for bivariate risk apportionment," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 153-160.

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    More about this item

    Keywords

    Precautionary premium; Saving; Multivariate utility function; Prudence; Super-additivity; D81;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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