When can harms disaggregation imply precautionary effort?

Jianli WANG, Jingyuan LI

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This paper proposes a comparative statics analysis for precautionary effort via Eeckhoudt and Schlesinger (2006)'s harms disaggregation idea. Within an expected-utility framework, we show that prudence alone implies precautionary effort.
Original languageEnglish
Title of host publicationProceedings of 2014 China International Conference On Insurance And Risk Management
PublisherTsinghua University Press
Number of pages5
Publication statusPublished - 1 Jan 2015

Bibliographical note

Paper presented at the 5th China International Conference on Insurance and Risk Management (CICIRM), Jul 23-26, 2014, Shenzhen, China.
ISBN of the source publication: 9787893952586

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