Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 1-6 |
| Number of pages | 6 |
| Journal | Insurance: Mathematics and Economics |
| Volume | 88 |
| Early online date | 27 May 2019 |
| DOIs | |
| Publication status | Published - 1 Sep 2019 |
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Keywords
- Expected-utility
- Intertemporal substitution
- Risk aversion
- Self-protection
- Stochastic dominance
Cite this
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How do changes in risk and risk aversion affect self-protection with Selden/Kreps–Porteus preferences? / WANG, Jianli; WANG, Hongxia; YICK, Ho Yin.
In: Insurance: Mathematics and Economics, Vol. 88, 01.09.2019, p. 1-6.Research output: Journal Publications › Journal Article (refereed)
TY - JOUR
T1 - How do changes in risk and risk aversion affect self-protection with Selden/Kreps–Porteus preferences?
AU - WANG, Jianli
AU - WANG, Hongxia
AU - YICK, Ho Yin
PY - 2019/9/1
Y1 - 2019/9/1
N2 - This paper examines the determinants of optimal effort in an intertemporal self-protection model. We separate attitude toward risk and attitude toward intertemporal substitution by adopting Selden/Kreps–Porteus preferences. We not only explore the sufficient conditions on risk preferences for guaranteeing the unambiguous effects of changes in risk on the optimal effort level but also show how a change in risk aversion alone affects the optimal effort level.
AB - This paper examines the determinants of optimal effort in an intertemporal self-protection model. We separate attitude toward risk and attitude toward intertemporal substitution by adopting Selden/Kreps–Porteus preferences. We not only explore the sufficient conditions on risk preferences for guaranteeing the unambiguous effects of changes in risk on the optimal effort level but also show how a change in risk aversion alone affects the optimal effort level.
KW - Expected-utility
KW - Intertemporal substitution
KW - Risk aversion
KW - Self-protection
KW - Stochastic dominance
UR - http://www.scopus.com/inward/record.url?scp=85066410094&partnerID=8YFLogxK
U2 - 10.1016/j.insmatheco.2019.05.004
DO - 10.1016/j.insmatheco.2019.05.004
M3 - Journal Article (refereed)
VL - 88
SP - 1
EP - 6
JO - Insurance: Mathematics and Economics
JF - Insurance: Mathematics and Economics
SN - 0167-6687
ER -