Home/Working Papers/The Effect of Future Income Uncertainty in Savings Decision
The Effect of Future Income Uncertainty in Savings Decision
05/11/2012
Ano: 2007
Código: WPE – 082
Autores/Pesquisadores:
Fábio Augusto Reis Gomes
Abstract:
This paper analyzes consumption and savings decisions in a two-period consumption setting, supposing that future income is uncertain in the sense of Knight (1921). The results imply that uncertainty-averse agents save more than risk-averse agents.