This paper proposes a mixed model to study a consumer’s optimal saving in the presence of two types of risk: income risk and background risk. In this model the income risk is represented by a fuzzy number and the background risk by a random variable. Three notions of precautionary saving are defined as indicators of the extra saving induced by the income and the background risk on the consumer’s optimal choice.
CITATION STYLE
Georgescu, I., Cristóbal-Campoamor, A., & Casademunt, A. M. L. (2016). A mixed model of optimal saving. In Advances in Intelligent Systems and Computing (Vol. 475, pp. 19–26). Springer Verlag. https://doi.org/10.1007/978-3-319-40111-9_3
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