Substituting one risk increase for another: Extension and application

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 247
Issue: C

Authors (3)

Wang, Jianli (not in RePEc) Wang, Hongxia (not in RePEc) Li, Jingyuan (Lingnan University)

Score contribution per author:

0.336 = (α=2.02 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The paper theoretically extends the idea of the rate of substitution of one risk change for another. We provide a generalized definition of the rate of substitution between two risk changes beginning with different starting risks. It is demonstrated that our generalized version can be used to compare two agents’ attitudes towards risk according to the Ross risk averse order. Moreover, we find that it provides additional insight into the probability premium approach to comparative risk aversion.

Technical Details

RePEc Handle
repec:eee:ecolet:v:247:y:2025:i:c:s0165176525000229
Journal Field
General
Author Count
3
Added to Database
2026-01-25