Restricted Increases in Risk Aversion and Their Application

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Date

2015-02-23

Journal Title

Journal ISSN

Volume Title

Publisher

Private Enterprise Research Center, Texas A&M University

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.

Description

PublicFinance

Keywords

1502, Comparative Risk Aversion, Portfolio Choice, Self-Protection, Insurance Demand, PublicFinance

Citation