Activity: Talks or Presentations › Other Invited Talks or Presentations
Description
To represent a change in the level of self-protection, the procedure developed by Diamond and Stiglitz (Journal of Economic Theory 8:337-360, 1974) generalize the findings in the relationship between risk aversion and prudence and the demand for self-protection. We address a bivariate self-protection problem by connecting mean(reference)-utility-preserving increases in bivariate risk and cross prudence. This alternate representation allows the existing findings to be generalized considerably, and also simplifies the analysis.