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Static Decisions May Be Optimal in a Life Cycle Setting

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Abstract

In a multicommodity life cycle setting with uncertainty and time additive expected utility, this note finds necessary and sufficient conditions on preferences for all but one optimal decision each period to be independent of the future and of uncertainty.

Suggested Citation

  • P Simmons, "undated". "Static Decisions May Be Optimal in a Life Cycle Setting," Discussion Papers 11/18, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:11/18
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    References listed on IDEAS

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    7. Dreze, Jacques H. & Modigliani, Franco, 1972. "Consumption decisions under uncertainty," Journal of Economic Theory, Elsevier, vol. 5(3), pages 308-335, December.
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    More about this item

    Keywords

    Multivariate life cycle; Euler equations.;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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