Comparative Statics Predictions for Changes in Uncertainty in the Portfolio and Savings Problems |
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| Authors: | Gyemyung Choi,Iltae Kim,& Arthur Snow |
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| Affiliation: | Financial Supervisory Services, Seoul,;Department of Economics, Chonnam National University,;Department of Economics, University of Georgia |
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| Abstract: | The paper investigates comparative statics effects of changes in uncertainty for a general family of problems that encompasses both the portfolio and saving decisions. Conditions are derived on preferences that are necessary and sufficient for unambiguous comparative statics predictions. The paper consolidates and completes the statement of restrictions on attitudes toward risk–bearing needed for determinate predictions in the portfolio and saving problems. |
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