Nonexpected Utility Preferences in a Temporal Framework with an Application to Consumption-Savings Behaviour*
نویسندگان
چکیده
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. Journal of‘ Economic Literature Classification Numbers: 022, 026. ( 1990 Academic Press. Inc.
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