“fundamental uncertainty”, “ambiguity”, “probability” and “risk” are common and universal. For a long time in economic theory, the … circumstances, but from which researchers were accustomed to abstracting. The appearance of F. Knight's book “Risk, Uncertainty and … neoclassical theory is the neglect of strong types of uncertainty, in particular fundamental uncertainty. The problem of …

aggregates, they share aggregate financial risk (almost) perfectly. Thus, the borrowing-constrained capital holders' wealth share … consumption, lenders face uninsurable idiosyncratic liquidity risk brought about by loss of employment …

the proposition that aggregate consumption growth equals aggregate income growth in a small open economy populated by … buffer stock savers. -- Precautionary Saving ; Buffer Stock Saving ; Marginal Propensity to Consume ; Permanent Income …

Precautionary savings occurs in response to uncertainty regarding future income. The precautionary motive to delay … realized, they will earn lower income. To avoid future income fluctuations and smooth consumption, they set aside a …

The existing literature suggests that when the saving decision of two-earner households under risk is analysed …, standard assumptions suffice for precautionary saving to exist under increases in risk of the first and second orders, but not …

the optimal saving and insurance decisions without disentangling time and risk preferences, we do so in a generalized mean … variance setup. In this dynamic setup we state a natural way to separate between time and risk preferences by means of a … at different times gives the optimal savings decision. The results are tractable and easy to interpret …

This note reconsiders the classical problem of precautionary saving in the presence of an interest-rate risk, and …