²¹This discussion omits the fact that an increase in μ requires an adjustment to γ via (10) which induces a human wealth effect that goes in the opposite direction from the direct effect of uncertainty. For sufficiently large values of μ, this effect can dominate the direct effect of uncertainty and the target wealth-to-income ratio declines. See the illustration below of the effects of an increase in uncertainty for further discussion. The same qualitative results may be found by a direct analysis of the partial derivatives of equation (35).