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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
The Theory of Risk and Risk Aversion
115
measures with risk aversion measure 1/η to be obtained. The CRRA class of utility
functions results from choosing η = 0 . Gollier (2001) provides a more detailed discussion
of special cases of the HARA family. A modified version of his notation was used here.
3.4.6 Comparative Statics Using Risk Aversion Measures
The derivatives of risk aversion, measured by either
A
u
(x
)
or
R
u
(x
)
, are important factors
in determining how the choice made by a decision maker changes as the starting wealth
changes. This is true in most decision models where expected utility is maximized. Two of
the best-known results are ...
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Publisher Resources

ISBN: 9780444536853