L'utilisation de laBibledans laPsychomachiede Prudence

Prudence with Multiplicative Risk

On multivariate prudence

In this paper we extend the theory of precautionary saving to the case in which uncertainty is multidimensional and we develop a matrix-measure of multivariate prudence. Furthermore, we characterize comparative prudence, decreasing and increasing prudence, the e¤ect of uncertainty on the marginal propensity to consume out of wealth, and the Drèze-Modigliani substitution e¤ect in this multivaria...

Prudence with respect to ambiguity

Under expected utility, prudence is equivalent to a positive third derivative of utility and plays a crucial role in precautionary saving behaviour. Eeckhoudt and Schlesinger (2006) proposed behavioural de nitions of prudence and of higher order risk preferences. The present paper proposes a similar de nition for prudence with respect to ambiguity, i.e., situations in which objective probabilit...

A benchmark value for relative prudence

In this paper we propose benchmark values for the coefficients of relative risk aversion and relative prudence on the basis of a binary choice model where the decision maker chooses between aggregating or disaggragating multiplicative risks. We relate our results to the decison maker’s willingness to trade-off the second with the first and the third (central) moment of his wealth distribution.

Call for prudence in whole-genome testing.

COVER Young whooping cranes (Grus americana) follow an ultralight aircraft. Each year, endangered whooping cranes are reared in captivity and artifi cially trained by ultralight aircraft on their fi rst lifetime migration from Wisconsin to Florida. Analyses of data from subsequent unaided migration events show that migratory performance improves over many years and that social learning from old...