This work reviews recent developments in the literature analyzing precautionary saving.
After a description of traditional precautionary saving theory, which considers labor income …

Standard macroeconomic models show that uncertainty plays a significant role in
consumption and saving decisions under rather mild conditions, namely the convexity of the …

The relevance of the study is determined by the objective need to model the processes and
results of business entities in conditions of the internal and external environment uncertainty …

This article studies how health and wealth investments react to the presence of random
returns, distinguishing the case where only the level of health investment is chosen from the …

This paper examines contemporaneous choices of saving and health prevention under a
two-argument utility of wealth and health. Unlike the traditional approach to modelling the …

This paper studies optimal prevention and cure when an agent copes with two different
sources of uncertainty: uncertainty on disease effect and uncertainty on cure effectiveness …

The standard one-period model for insurance demand does not consider the interaction
between the present and the future. Reflecting this observation, we analyze intertemporal …

This note reconsiders the classical problem of precautionary saving in the presence of an
interest-rate risk, and provides a new interpretation of the threshold of 2 for the relative …

We study precautionary saving in a two-period model that allows for nonlinear risks and
nonseparable preferences. Permitting nonlinear risk effects is important because they are …

This paper identifies a new sufficient condition for a prudent agent to have positive
precautionary saving in the presence of labor income and interest rate risks of any size. We …