Journal ArticleDOI
Precautionary saving and fuzzy information
TLDR
The authors consider a two-period life-cycle model where uncertainty about future labour income is modelled by a fuzzy set and apply a defuzzification strategy that explicitly takes the individual's behaviour towards risk into account.About:
This article is published in Economics Letters.The article was published on 2001-01-01. It has received 7 citations till now. The article focuses on the topics: Precautionary savings & Defuzzification.read more
Citations
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Precautionary Saving in the Small and in the Large
TL;DR: The Arrow-Pratt theory of risk aversion was shown to be isomorphic to the theory of optimal choice under risk in this paper, making possible the application of a large body of knowledge about risk aversion to precautionary saving.
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Simulator and scenario for "Deleveraging crises and deep recessions: a behavioural approach"
Pascal Seppecher,Isabelle Salle +1 more
TL;DR: Jamel as discussed by the authors is an agent-based framework dedicated to modeling, simulation and analysis of complex monetary economies, and it contains the scenario used in the paper "Deleveraging crises and deep recessions: a behavioural approach" by Pascal Seppecher and Isabelle Salle.
Journal ArticleDOI
Deleveraging crises and deep recessions: a behavioural approach
Pascal Seppecher,Isabelle Salle +1 more
TL;DR: This article developed a decentralized and micro-founded macro-economic agent-based model, augmented with an opinion model, which produces endogenous waves of pessimism and optimism that feed back into firms' leverage and households' precautionary saving behavior.
Journal ArticleDOI
Nash-equilibria in a heterogeneous oligopoly with fuzzy information
TL;DR: In this article, the authors consider a model of an oligopolistic market with heterogeneous firms and products where neither the cost nor the demand functions are common knowledge and each firm only has some vague ideas about the price strategies adopted by its competitors which is modelled by a fuzzy set.
Book ChapterDOI
The Practical Application of Fuzzy Information Analysis in Flood Forecasting
Lihua Feng,Weihu Hong +1 more
TL;DR: The fuzzy information analysis method is used to forecast the peak discharge, with the result in accordance with the actual event, and can be seen as a new and effective method of flood prediction and forecasting.
References
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Journal ArticleDOI
The importance of precautionary motives in explaining individual and aggregate saving
R. Glenn Hubbard,R. Glenn Hubbard,Jonathan Skinner,Jonathan Skinner,Stephen P. Zeldes,Stephen P. Zeldes +5 more
TL;DR: In this article, the authors examined predictions of a life cycle simulation model, in which individuals face uncertainty regarding thier length of life, earnings, and out-of-pocket medical expenditures, and imperfect insurance and lending markets.
Journal ArticleDOI
How Important Is Precautionary Saving
TL;DR: In this paper, the authors estimate how much of the wealth of a sample of PSID respondents is held because some households face more income uncertainty than others, and find that between 39 and 46 percent of wealth in their sample is attributable to the extra uncertainty that some consumers face compared to the lowest-uncertainty group.
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Earnings Uncertainty and Aggregate Wealth Accumulation
TL;DR: In this article, the authors argue that precautionary savings due to uninsurable earnings uncertainty are likely to be an important source of aggregate wealth accumulation, and they present a stylized model that can easily generate levels of wealth above 60 percent of the observed net wealth in the United States, net of conventional life-cycle savings.
Journal ArticleDOI
A Closed-form Solution for a Model of Precautionary Saving
TL;DR: In this paper, the authors analyze life cycle consumption plans and distinguish between temporal risk aversion and intertemporal substitution, and find a rationale for precautionary saving and a larger sensitivity of changes in consumption to income innovations.