Nonexpected utility preferences in a temporal framework with an application to consumption-savings behaviour

Abstract This paper investigates the role of non-expected utility preferences in a multiperiod consumption/savings framework. Three objectives are achieved: First, it is shown that behaviour can be intertemporally consistent even if the preference ordering is not. Second, non-expected utility preference orderings are shown to be useful for disentangling the elasticity of intertemporal substitution from the degree of risk aversion. Finally, some discrimination between the non-expected utility theories that have appeared in the atemporal literature is achieved by means of axioms which arise naturally from the multiperiod framework.

• Publication year

  1990

• Venue

  Journal of Economic Theory

• Publication date

  1990-02-01

• Fields of study

  Economics

• Identifiers
  DOI 10.1016/0022-0531(90)90085-X
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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