More on insurance as a Giffen good
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Eric Briys; Georges Dionne; Louis Eeckhoudt
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Article
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1989
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Springer
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English
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In this article, we generalize the Hoy and Robson (1981) analysis and provide a necessary and sufficient condition for insurance not to be a Giffen good. The condition gives a bound for the variation of absolute risk aversion that permits the wealth effect to be always dominated by the substitution