PL EN


2013 | 135 | 79-87
Article title

Miary intensywności zachowań rozważnych

Content
Title variants
EN
Measure of the Intensity of Prudent Behavior
Languages of publication
PL
Abstracts
EN
The behavior of the risk averse decision-maker is prudent if the precautionary saving activities are taken to avoid risk. Prudence is defined as a particular type of the preference relation over uncertain choices. Our goal in this paper is to show the relationship between the Arrow-Pratt coefficient of the risk aversion and the measure of the intensity of prudence. The properties of the utility function expressing prudence behavior are presented and the particular class of utility functions with non monotonic absolute risk aversion coefficient is considered.
Year
Volume
135
Pages
79-87
Physical description
Contributors
References
  • Caballe J., Pomansky A. (1996): Mixed Risk Aversion. "Journal of Economic Theory", No. 71.
  • Eeckhoudt L., Schlesinger H. (2006): Putting Risk In Its Proper Place. "American Economic Review", 96(1).
  • Kimball M. (1990): Precautionary Saving in the Small and in the Large. "Econometrica", No. 58, (1).
  • Leland H.E. (1968): Saving and Uncertainty: The Precautionary Vulnerability. "Quarterly Journal of Economics", No. 82(3).
  • Maggi M.A., Magnani U., Menegatti M. (2006): On the Relationship Between Absolute Prudence and Absolute Risk Aversion. "Decisions in Economics and Finance", No. 29.
  • Pratt J., Zeckhauser R.J. (1987): Proper Risk Aversion. "Econometrica", No. 55 (1).
Document Type
Publication order reference
Identifiers
ISSN
2083-8611
YADDA identifier
bwmeta1.element.desklight-d5431851-5484-462b-9ea5-dbe35d2beeff
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