Skip to Main content Skip to Navigation
Journal articles

Restricted increases in risk aversion and their application

Abstract : This paper proposes additional definitions of what it means for one decision maker to be more risk averse than another. These definitions build on the strongly more risk averse definition presented by Ross (Econometrica 49:621–663, 1981). Using examples from portfolio choice, self-protection and insurance demand, it is shown that these definitions of increased risk aversion facilitate clear-cut comparative statics analysis in decision models where traditional concepts of increased risk aversion are insufficient.
Document type :
Journal articles
Complete list of metadata
Contributor : Romain Boisselet Connect in order to contact the contributor
Submitted on : Tuesday, June 6, 2017 - 3:44:09 PM
Last modification on : Tuesday, April 12, 2022 - 4:12:03 PM




Louis Eeckhoudt, Liqun Liu, Jack Meyer. Restricted increases in risk aversion and their application. Economic Theory, Springer Verlag, 2016, 64 (1), pp.161--181. ⟨10.1007/s00199-016-0978-z⟩. ⟨hal-01533535⟩



Record views