TY - JOUR
T1 - Precautionary effort : another trait for prudence
AU - WANG, Jianli
AU - LI, Jingyuan
N1 - This paper is also available at Social Science Research Network at http://ssrn.com/abstract=2445785
PY - 2015/12
Y1 - 2015/12
N2 - This paper shows that, in the temporal model of Eeckhoudt et al. (2012), prudence alone is sufficient to obtain a precautionary effort. Moreover, our conclusions relax the assumption of the convexity of loss probability. We further analyze the effect of the introduction or deterioration of background risks on precautionary effort in different settings.
AB - This paper shows that, in the temporal model of Eeckhoudt et al. (2012), prudence alone is sufficient to obtain a precautionary effort. Moreover, our conclusions relax the assumption of the convexity of loss probability. We further analyze the effect of the introduction or deterioration of background risks on precautionary effort in different settings.
UR - http://commons.ln.edu.hk/sw_master/2723
UR - http://www.scopus.com/inward/record.url?scp=84958874346&partnerID=8YFLogxK
U2 - 10.1111/jori.12054
DO - 10.1111/jori.12054
M3 - Journal Article (refereed)
SN - 0022-4367
VL - 82
SP - 977
EP - 983
JO - Journal of Risk and Insurance
JF - Journal of Risk and Insurance
IS - 4
ER -