Precautionary Saving and Altruism

Arbeitspapier

The potential importance of the precautionary motive for saving has been noted in many studies during the last decades. This paper examines the determination of precautionary saving when people have access to intra-family risk sharing. I show that, with uncertain future income, altruism per se can induce time consistent, however, not necessarily ex ante efficient, risk sharing between risk averse spouses. The more altruistic the couple is, the closer is the solution to the efficient one. Also welfare and savings effects from social insurance turn out to be sensitive to assumptions about family structure. For risk sharing couples, the introduction of a compulsory insurance scheme may have substantially smaller effects on welfare and precautionary savings.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 1997:19

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Altruism; Philanthropy; Intergenerational Transfers ; Criteria for Decision-Making under Risk and Uncertainty ; Marriage; Marital Dissolution; Family Structure; Domestic Abuse
• Thema: Precautionary saving ; altruism ; risk sharing ; marriage ; intra-family insurance

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Nordblom, Katarina
• Ereignis: Veröffentlichung
• (wer): Uppsala University, Department of Economics
• (wo): Uppsala
• (wann): 1997

Weitere Informationen

• Handle: http://hdl.handle.net/10419/82884
• URN: urn:nbn:se:uu:diva-2387
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ