| dc.description.abstract | This paper is concerned with the interaction of
saving and portfolio decisions of a single consumer.
Its building blocks are the classical theory of optimal
allocation over time, and Arrow's recent formulation of
the theory of portfolio selection. The concept of a
risk aversion function is extended to a two-period
context, and the implications of declining risk
aversion are explored. Also discussed are the problems
of the effect of changes in the rates of return and in
the degree of risk, as well as the question of taxation
and risk-taking. | en |
