Optimal Saving and Prudence in a Possibilistic Framework

Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 217)

Abstract

In this paper we study the optimal saving problem in the framework of possibility theory. The notion of possibilistic precautionary saving is introduced as a measure of the way the presence of risk (represented by a fuzzy number) influences a consumer in establishing the level of optimal saving. The equivalence between the prudence condition (in the sense of Kimball) and a positive possibilistic precautionary saving is proved. Some relations between possibilistic risk aversion, prudence and possibilistic precautionary saving are established.

Keywords

precautionary saving prudence possibility theory 

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Copyright information

© Springer International Publishing Switzerland 2013

Authors and Affiliations

  • Ana Maria Lucia Casademunt
    • 1
  • Irina Georgescu
    • 2
    • 3
  1. 1.Faculty of Business Administration, Department of SociologyCordoba UniversityCordobaSpain
  2. 2.Department of Quantitative MethodsUniversidad Loyola–AndaluciaCordobaSpain
  3. 3.Department of Economic CyberneticsAcademy of Economic StudiesBucharestRomania

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