|Title||Saving, Risk Sharing, and Preferences for Risk|
|Publication Type||Journal Article|
|Year of Publication||2004|
|Journal||The American Economic Review|
|Keywords||Risk Factors, Risk Taking, Savings|
An important feature of household saving decisions is the ability of individual members to share risk among them. With few exceptions, theoretical and empirical studies characterize household saving as if a single agent were making the decision. Under this assumption, the risk-sharing component of household saving is largely ignored. This paper is one of the first attempts to analyze the effect of risk sharing on saving by characterizing the household as a group of agents making efficient decisions.