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Risk and risk aversion for state-dependent utility

✍ Scribed by David Kelsey

Publisher: Springer US
Year: 1992
Tongue: English
Weight: 493 KB
Volume: 33
Category: Article
ISSN: 0040-5833
DOI: 10.1007/bf00133983

No coin nor oath required. For personal study only.

✦ Synopsis

This paper analyses risk and risk aversion in the state-dependent utility model, which is useful for modelling health or life insurance purchase. We use Karni's (1983) definition of risk aversion, and extend the class of risks to which it can be applied.

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