Extended Model of Precautionary Saving Based on Recursive Utility

摘要：

How to measure the uncertainty is one of the most important problems in the theory of precautionary saving. This paper establishes an extended model of precautionary saving based on recursive utility (RU-PSM). The new model takes the volatility of consumption, interest rate and the return of risky asset as the measure of the uncertainty and extends the model introduced by Deaton. The new model also implies that the coefficient of risk aversion and the elasticity of intertemporal substitution affect the growth of consumption together.

关键词： precautionary saving extended model recursive utility uncertainty volatility

作者: Xusong Xu Lili Ma

作者单位: School of Economics and Management Wuhan University Wuhan, P.R.China

会议类型: 国际会议

会议名称: 第三届IEEE无线通讯、网络技术暨移动计算国际会议

会议地点: 上海

会议语种:英文

在线出版日期: 2007-09-21（万方平台首次上网日期，不代表论文的发表时间）