Conclusion
The relationship between uncertainty and the optimal savings-consumption decision has been discussed. A simple model has been used to show that the existence of default risk has potentially important effects on the nature of this relationship and should not be neglected in its analysis.
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Baltensperger, E. Uncertainty, risk of default and the savings-consumption decision. Zeitschr. f. Nationalökonomie 35, 89–97 (1975). https://doi.org/10.1007/BF01291805
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DOI: https://doi.org/10.1007/BF01291805