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Abstract
Previous research on the measurement of the strength of the precautionary saving motive has concentrated on reactions to an exogenous risk on future income. Com- plementing the work by Liu (2014), I derive a statement analogous to Ross' (1981) comparative risk aversion for precautionary saving under return-risk increases. The main theorem involves a comparison based on precautionary premia, whose denition deals explicitly with the immediate endogeneity of risk exposure under return risk. I also dene preference-intensity measures and state conditions for a representation of the comparative strength of the precautionary-saving motive equivalent to the main theorem. All comparisons apply to a wide range of denitions of risk increases.