Connecting Possibilistic Prudence and Optimal Saving

TitleConnecting Possibilistic Prudence and Optimal Saving
Publication TypeJournal Article
Year of Publication2013
AuthorsCasademunt, A. M. L., and I. Georgescu
JournalInternational Journal of Interactive Multimedia and Artificial Intelligence
ISSN1989-1660
IssueRegular Issue
Volume2
Number4
Date Published12/2013
Pagination38-45
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 possibilistic risk (represented by a fuzzy number) influences a consumer in establishing the level of optimal saving. The notion of prudence of an agent in the face of possibilistic risk is defined and the equivalence between the prudence condition and a positive possibilistic precautionary saving is proved. Some relations between possibilistic risk aversion, prudence and possibilistic precautionary saving were established.

KeywordsPossibility, Precautionary, Saving, Theory
DOI10.9781/ijimai.2013.244
URLhttp://www.ijimai.org/journal/sites/default/files/files/2013/10/ijimai20132_4_4_pdf_10239.pdf
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