Corrigendum Corrigendum to “ Optimal saving under Poisson uncertainty ” [ J . Econ . Theory 87 ( 1999

The above-referenced paper established several findings. After presenting the economic environment where uncertainty results from a Poisson process (Section 2.1), it derived a house-hold’s budget constraint (Section 2.2) and formulated the Bellman equation appropriate for the maximization problem of the household (Section 2.3). Section 3 derived first-order conditions that determine optimal consumption levels and an optimal allocation of savings across the risky and riskless investment form. Section 3 also derived the Keynes–Ramsey rule that determines optimal evolution of consumption over time. Section 4 put the household in a general equilibrium setup and showed that corner solution will be observed under standard assumptions: Households allocate all savings to either the riskless or the risky investment form, depending on relative (expected) returns. The present note corrects two errors that were made in deriving the Keynes–Ramsey rule. These errors occurred in using rules for computing differentials of functions that are not appropriate in a context where the arguments of the functions follow stochastic processes. The present note therefore corrects part of Section 3 of Wälde [2]. All other findings of the paper remain valid (for example, the steps made to derive the budget constraint, first-order conditions, and general equilibrium properties), as these other findings do not depend on the Keynes–Ramsey rule or on how this rule was derived. The main contribution of the paper, the simple analysis of endogenous business cycles in a general equilibrium context as in, e.g., [3], therefore remains valid and useful for future research. The next section will compute the Keynes–Ramsey rule using the appropriate rules for computing differentials. The main difference lies in the fact that the evolution of