Vergara, Marcos2017-11-142017-11-142017Vergara, Marcos, (2017), Precautionary saving: A taxonomy of prudence, Economics Letters, 150, issue C, p. 18-20,http://hdl.handle.net/11447/1741https://doi.org/10.1016/j.econlet.2016.10.029We extend Gunning (2010) by analyzing the effect of risk on saving. We derive a general prudence index that determines the threshold for the future risk that makes saving increase. We relate our results to the utility premium of Friedman–Savage.8 p.en-USPrecautionary savingGeneral prudence indexUtility premiumArtículo