Precautionary saving and endogenous labor supply with and without intertemporal expected utility
Abstract
We analyze precautionary saving behavior in a framework with labor and nonlabor income risks, an endogenous supply of labor, and a representation of preferences that disentangles attitudes toward risk, attitudes toward intertemporal substitution, and ordinal preferences for consumption and leisure. This preference structure allows us to disentangle and to describe in an intuitive way the different forces that determine precautionary saving "in the small" and "in the large". © 2011 The Ohio State University.
Publication Title
Journal of Money, Credit and Banking
Recommended Citation
Nocetti, D., & Smith, W. (2011). Precautionary saving and endogenous labor supply with and without intertemporal expected utility. Journal of Money, Credit and Banking, 43 (7), 1475-1504. https://doi.org/10.1111/j.1538-4616.2011.00432.x
