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

We study optimal insurance demand for a risk-and ambiguity-averse consumer under
ambiguity about contract nonperformance. Ambiguity aversion lowers optimal insurance …

China has the largest market potential in the world, but the resident consumption rate is
relatively low. Releasing China's consumption potential will contribute to the sustainable …

Policy makers concerned with setting optimal values for carbon instruments to address
climate change externalities often employ integrated assessment models (IAMs). In the past …

This study investigates insurance demand in a two-period model when a decision-maker
(DM) is averse to the ambiguity of loss distributions. This study derives sufficient conditions …

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 considers a portfolio allocation problem between a risky asset and an ambiguous
asset, and investigates how greater ambiguity aversion influences the optimal proportion …

We analyze the impact of risk aversion and ambiguity aversion on the competing demands
for annuities and bequeathable savings using a lifecycle recursive utility model. Our main …

Nearly all life-cycle models adopt Yaari's (1965) assumption that individuals know the
survival probabilities that they face. Given that an individual's exact survival probabilities are …

We introduce mean-preserving (MP) capacities for Choquet Expected Utility (CEU). MP-
capacities disentangle ambiguity from ambiguity attitude and facilitate economically …