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Precautionary Saving and Consumption Smoothing Across Time and Possibilities
16 references·7 citing·35 second hop
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(2001)INDIVIDUAL RISK ATTITUDES: MEASUREMENT, DETERMINANTS, AND BEHAVIORAL CONSEQUENCES (2011)Saving and Uncertainty: The Precautionary Demand for Saving (1968)Uninsured Idiosyncratic Risk and Aggregate Saving (1994)The analysis of household surveys (1997)Conditional Skewness in Asset Pricing Tests (2000)The Dividend-Price Ratio and Expectations of Future Dividends and Discount Factors (1988)Habit Formation: A Resolution of the Equity Premium Puzzle (1990)Financial Intermediation and Delegated Monitoring (1984)Well-being : the foundations of hedonic psychology (1999)The Dividend-Price Ratio and Expectations of Future Dividends and Discount Factors (1986)On the measurement of inequality (1970)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The arbitrage theory of capital asset pricing (1976)
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References

  • 1964Risk Aversion in the Small and in the Large4,964 cited
  • 1976Risk Aversion in the Small and in the Large4,655 cited
  • 1989Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: A Theoretical Framework4,270 cited
  • 1997Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study2,399 cited
  • 1978Temporal Resolution of Uncertainty and Dynamic Choice Theory1,822 cited
  • 1988Intertemporal Substitution in Consumption1,567 cited
  • 1989Precautionary Saving in the Small and in the Large1,498 cited
  • 1981Intertemporal Substitution in Consumption1,397 cited
  • 1990Nonexpected Utility in Macroeconomics986 cited
  • 1989The Equity Premium Puzzle and the Riskfree Rate Puzzle922 cited
  • 1989Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence904 cited
  • 1991Standard Risk Aversion851 cited
  • 1972Consumption decisions under uncertainty583 cited
  • 1990Consumption puzzles and precautionary savings549 cited
  • 1988Risky income, life cycle consumption, and precautionary savings521 cited

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1999
Robust Permanent Income and Pricing
476 cited

Cited by

  • 2008Precautionary Saving and Precautionary Wealth33 cited
  • 2004Precautionary Saving and Consumption Fluctuations20 cited
  • 2014Consumption, Risk, and Prioritarianism3 cited
  • 2014Precautionary Saving with Selden/Kreps-Porteus Preferences Revisited2 cited
  • 2013On Risk Aversion and Prudence0 cited
  • 2014On the Strictly Decreasing Utility (Value) Premium of Friedman-Savage0 cited
  • 2015The Comparative Statics of Ambiguity Aversion on Precautionary Paying for Stochastic Improvements0 cited