The marginal propensity to consume and multidimensional risk

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 119
Issue: 2
Pages: 124-127

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Kimball (1990a,b) established that income risk increases the marginal propensity to consume if and only if absolute prudence decreases. We characterize decreasing and increasing multivariate prudence and show that a multidimensional risk increases the marginal propensity to consume if and only if absolute prudence decreases with wealth, in the sense that its derivative is negative-definite.

Technical Details

RePEc Handle
repec:eee:ecolet:v:119:y:2013:i:2:p:124-127
Journal Field
General
Author Count
3
Added to Database
2026-01-25