First-order prudence and its implications for precautionary savings and the risk-free rate
Prudence is widely known for inducing precautionary saving behavior. This paper revisits this important implication by introducing the notions of first-order and second-order prudence. Within smooth expected utility (EU), prudence is second-order. In that case, the presence of a small, positive-mean...
Gespeichert in:
| Hauptverfasser: | , |
|---|---|
| Dokumenttyp: | Article (Journal) Book/Monograph |
| Sprache: | Englisch |
| Veröffentlicht: |
Rochester, NY
Elsevier
January 27, 2023
|
| DOI: | 10.2139/ssrn.4339507 |
| Online-Zugang: | Verlag, kostenfrei, Volltext: https://doi.org/10.2139/ssrn.4339507 Verlag, lizenzpflichtig, Volltext: https://papers.ssrn.com/abstract=4339507 Verlag, kostenfrei: https://ssrn.com/abstract=4339507 
|
| Verfasserangaben: | Sebastian Ebert, Paul Karehnke |
MARC
| LEADER | 00000cam a2200000 c 4500 | ||
|---|---|---|---|
| 001 | 1839564008 | ||
| 003 | DE-627 | ||
| 005 | 20251014151229.0 | ||
| 007 | cr uuu---uuuuu | ||
| 008 | 230320s2023 xxu|||||o 00| ||eng c | ||
| 024 | 7 | |a 10.2139/ssrn.4339507 |2 doi | |
| 035 | |a (DE-627)1839564008 | ||
| 035 | |a (DE-599)KXP1839564008 | ||
| 035 | |a (OCoLC)1373386568 | ||
| 035 | |a (ELVSSRN)4339507 | ||
| 035 | |a (DE-627-1)091268478 | ||
| 040 | |a DE-627 |b ger |c DE-627 |e rda | ||
| 041 | |a eng | ||
| 044 | |c XD-US | ||
| 084 | |a 17 |2 sdnb | ||
| 084 | |a D91 |a E21 |a G12 |2 jelc | ||
| 100 | 1 | |a Ebert, Sebastian |d 1982- |e VerfasserIn |0 (DE-588)1012218635 |0 (DE-627)660766450 |0 (DE-576)345125584 |4 aut | |
| 245 | 1 | 0 | |a First-order prudence and its implications for precautionary savings and the risk-free rate |c Sebastian Ebert, Paul Karehnke |
| 264 | 1 | |a Rochester, NY |b Elsevier |c January 27, 2023 | |
| 300 | |a 1 Online-Ressource (30 Seiten) | ||
| 336 | |a Text |b txt |2 rdacontent | ||
| 337 | |a Computermedien |b c |2 rdamedia | ||
| 338 | |a Online-Ressource |b cr |2 rdacarrier | ||
| 500 | |a Gesehen am 20.03.2023 | ||
| 506 | 0 | |a Open Access |e Controlled Vocabulary for Access Rights |u http://purl.org/coar/access_right/c_abf2 |f unrestricted online access | |
| 520 | |a Prudence is widely known for inducing precautionary saving behavior. This paper revisits this important implication by introducing the notions of first-order and second-order prudence. Within smooth expected utility (EU), prudence is second-order. In that case, the presence of a small, positive-mean risk to future wealth reduces saving, while first-order prudence can increase them. The latter is the case for non-EU theories such as rank-dependent or reference-dependent utility, and the increased savings help resolve the so-called risk-free rate puzzle. By proposing a novel utility function that features first-order prudence, we show that the risk-free rate puzzle can be resolved even within the EU paradigm. | ||
| 650 | 4 | |a expected utility | |
| 650 | 4 | |a precautionary saving | |
| 650 | 4 | |a probability weighting | |
| 650 | 4 | |a Prudence | |
| 650 | 4 | |a risk-free rate puzzle | |
| 653 | |a Prudence |a precautionary saving |a risk-free rate puzzle |a expected utility |a probability weighting | ||
| 700 | 1 | |a Karehnke, Paul |d 1987- |e VerfasserIn |0 (DE-588)1078341524 |0 (DE-627)838353606 |0 (DE-576)45072882X |4 aut | |
| 856 | 4 | 0 | |u https://doi.org/10.2139/ssrn.4339507 |m X:ELVSSRN |x Verlag |x Resolving-System |z kostenfrei |3 Volltext |
| 856 | 4 | 0 | |u https://papers.ssrn.com/abstract=4339507 |x Verlag |z lizenzpflichtig |3 Volltext |
| 856 | 4 | 0 | |u https://ssrn.com/abstract=4339507 |m X:ELVSSRN |x Verlag |z kostenfrei |
| 912 | |a ZDB-33-FRN | ||
| 912 | |a ZDB-33-SFEN | ||
| 912 | |a ZDB-33-ERN | ||
| 951 | |a BO | ||
| 992 | |a 20230320 | ||
| 993 | |a Article | ||
| 994 | |a 2023 | ||
| 998 | |g 1012218635 |a Ebert, Sebastian |m 1012218635:Ebert, Sebastian |d 180000 |d 181000 |d 180000 |e 180000PE1012218635 |e 181000PE1012218635 |e 180000PE1012218635 |k 0/180000/ |k 1/180000/181000/ |k 0/180000/ |p 1 |x j | ||
| 999 | |a KXP-PPN1839564008 |e 4293243380 | ||
| BIB | |a Y | ||
| JSO | |a {"type":{"media":"Online-Ressource","bibl":"book"},"name":{"displayForm":["Sebastian Ebert, Paul Karehnke"]},"title":[{"title":"First-order prudence and its implications for precautionary savings and the risk-free rate","title_sort":"First-order prudence and its implications for precautionary savings and the risk-free rate"}],"id":{"eki":["1839564008"],"doi":["10.2139/ssrn.4339507"]},"origin":[{"dateIssuedDisp":"January 27, 2023","publisher":"Elsevier","publisherPlace":"Rochester, NY","dateIssuedKey":"2023"}],"note":["Gesehen am 20.03.2023"],"person":[{"display":"Ebert, Sebastian","role":"aut","roleDisplay":"VerfasserIn","family":"Ebert","given":"Sebastian"},{"family":"Karehnke","given":"Paul","display":"Karehnke, Paul","roleDisplay":"VerfasserIn","role":"aut"}],"physDesc":[{"extent":"1 Online-Ressource (30 Seiten)"}],"recId":"1839564008","language":["eng"]} | ||
| SRT | |a EBERTSEBASFIRSTORDER2720 | ||