Skip to Main Content
Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
Tomas J. Philipson and George Zanjani
466
under the existing technology can be represented here as an increase in insurance mar-
ket efficiency from τ to
τ
, with the total spent on the subsidy being:
where
i
(Y , τ
, x
1
)
is the co-insurance chosen by the consumer in the presence of
the subsidy. To compare the relative efficiency of public subsidization of consumption
smoothing versus health smoothing, we may consider
τ
chosen so that the amount
spent on the expenditure subsidy is the same as that spent on R&D investment:
The value of the expenditure subsidy in terms of willingness to pay can be defined as:
while the value of the R&D investment can ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Handbook of the Economics of Finance

Handbook of the Economics of Finance

George M. Constantinides, Milton Harris, Rene M. Stulz
Quantitative Financial Risk Management: Theory and Practice

Quantitative Financial Risk Management: Theory and Practice

Constantin Zopounidis, Emilios Galariotis
Mathematical Methods for Finance: Tools for Asset and Risk Management

Mathematical Methods for Finance: Tools for Asset and Risk Management

Sergio M. Focardi, CFA Frank J. Fabozzi, Turan G. Bali

Publisher Resources

ISBN: 9780444536853