Tzeng L.Y.Wang J.-H.2019-07-222019-07-22200401486195https://scholars.lib.ntu.edu.tw/handle/123456789/414448This paper extends the traditional unambiguous comparative statics analysis of an increase in risk into the case where individual's utility is a function of two goods rather than of a payoff only. Specifically, we use saving behavior to demonstrate the application of the extension. We find that a first-order stochastic dominance of rate of return causes a nonsatiable and risk-averse borrower to increase his borrowing. A mean-preserving second-order stochastic dominance of rate of return causes a borrower, who is risk-averse and prudent, to decrease his borrowing. Furthermore, we find that a stronger central risk dominance leads a nonsatiable and risk-averse lender to decrease his saving. Last, for the mean-preserving CDF shifts, we give a necessary and sufficient condition for all risk-averse lenders (respectively, borrowers) to decrease their saving (respectively, borrowing). ? 2004 Elsevier Inc. All rights reserved.Central risk dominanceIncrease in riskSavingStochastic dominance[SDGs]SDG8journal article10.1016/j.jeconbus.2004.01.0042-s2.0-4444304074https://www.scopus.com/inward/record.uri?eid=2-s2.0-4444304074&doi=10.1016%2fj.jeconbus.2004.01.004&partnerID=40&md5=9cc5901b160a741d5ef6f528123cd67b