Deterministic Transformations of Random Variables and the Comparative Statics of Risk.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 1989
Volume: 2
Issue: 2
Pages: 179-88

Authors (2)

Meyer, Jack (Michigan State University) Ormiston, Michael B (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

In this article, a general class of deterministic transformations that can be interpreted as changes in risk are identified. This provides a fourth characterization of a Rothschild-Stiglitz increase in risk. In addition, a particular subclass of these transformations, termed simple transformation, is shown to be well suited for comparative static analyses. This subclass contains as a special case the linear transformation used so often in the literature. A theorem is presented that generalizes the known comparative static results for large as well as small changes in risk. Copyright 1989 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:2:y:1989:i:2:p:179-88
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26