Decreasing downside risk aversion and background risk

B-Tier
Journal: Journal of Mathematical Economics
Year: 2014
Volume: 53
Issue: C
Pages: 59-63

Authors (3)

Crainich, David (not in RePEc) Eeckhoudt, Louis (Lille Économie et Management (...) Le Courtois, Olivier (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

In this paper, we show that risk vulnerability can be associated with the concept of downside risk aversion (DRA) and an assumption about its behavior, namely that it is decreasing in wealth. Specifically, decreasing downside risk aversion in the Arrow–Pratt and Ross senses are respectively necessary and sufficient for a zero-mean background risk to raise the aversion to other independent risks.

Technical Details

RePEc Handle
repec:eee:mateco:v:53:y:2014:i:c:p:59-63
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25