کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
7348764 1476594 2018 15 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Comparative higher-order risk aversion and higher-order prudence
ترجمه فارسی عنوان
مقابله با اضطراب ریسک بالا و میزان احتیاط بالاتر
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
چکیده انگلیسی
In this paper, we define the nth-degree utility premium as the pain associated with facing the passage from a more favorable risk to a less favorable risk, where the risk increase is specified by the notion of more nth-degree risk. We further define the nth-degree prudence utility premium as the increase in pain when the individual suffers a sure loss. We show that the nth-degree utility premium, normalized by the (n−1)th derivative of the utility function evaluated at the initial wealth, can explain comparative risk aversion of higher orders. On the other hand, the nth-degree prudence utility premium, normalized by the nth derivative of the utility function evaluated at the initial wealth, can explain comparative prudence of higher orders.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Economics Letters - Volume 169, August 2018, Pages 38-42
نویسندگان
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