Restricted Increases in Risk Aversion and Their Application
Abstract
This paper proposes two restricted forms of an increase in risk aversion. Using examples from portfolio choice, self-protection and insurance demand, it is shown that these stronger notions of increased risk aversion facilitate clear-cut comparative statics analysis in environments where traditional concepts of increased risk aversion are insufficient.
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Citation
Eeckhoudt, Louis; Liu, Liqun; Meyer, Jack (2015). Restricted Increases in Risk Aversion and Their Application. Private Enterprise Research Center, Texas A&M University; Texas A&M University. Library. Available electronically from https : / /hdl .handle .net /1969 .1 /199413.