کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
980428 1480463 2010 7 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Rank-ordering of risk preferences with conventional and discrete measures
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Rank-ordering of risk preferences with conventional and discrete measures
چکیده انگلیسی
When the functional form of utility is unknown, conventional measures of risk aversion are often approximated by applying a Taylor series expansion to expected utility. This is shown to produce counterintuitive rank-orderings of risk preferences for individuals who are willing to pay equal reservation prices in lotteries with different prizes. Moreover, individuals who are unwilling to participate in favorable lotteries may be incorrectly identified as having a finite aversion to risk. Correct orderings are obtained by applying a discrete measure of relative risk aversion. The contrast between the conventional and discrete measures is illustrated with data from three Dutch surveys.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: The Quarterly Review of Economics and Finance - Volume 50, Issue 3, August 2010, Pages 291-297
نویسندگان
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