Abstract
This paper describes a simple utility function for dynamic choice problems under uncertain lifetime. Preferences are time consistent and similar to Selden's ordinal certainty equivalent hypothesis. For Yaari's model of consumption/savings decisions, holding intertemporal substitution fixed, the consumption growth rate is increasing (decreasing) in the mortality rate if risk aversion is lower (higher) than under expected utility preferences.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
