Eeckhoudt L.Huang R.J.Tzeng L.Y.2019-07-222019-07-22201200224367https://scholars.lib.ntu.edu.tw/handle/123456789/414434While the concept of precautionary saving is well documented, that of precautionary effort has received relatively limited attention. In this note, we set up a two period model in order to analyze the conditions under which the introduction (or deterioration) of an independent background risk increases effort. ? The Journal of Risk and Insurance, 2012.journal article10.1111/j.1539-6975.2011.01441.x2-s2.0-84861480353https://www.scopus.com/inward/record.uri?eid=2-s2.0-84861480353&doi=10.1111%2fj.1539-6975.2011.01441.x&partnerID=40&md5=a220803f661b3c296c772f5810e2c361