The impact of prudence on optimal prevention revisited

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 113
Issue: 2
Pages: 147-149

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

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

Abstract

We re-examine the link between absolute prudence and self-protection activities. We show that the level of effort chosen by an agent with decreasing absolute prudence is larger than the optimal effort chosen by a risk-neutral agent if the degree of absolute prudence is less than a threshold that is utility-independent and empirically verifiable.

Technical Details

RePEc Handle
repec:eee:ecolet:v:113:y:2011:i:2:p:147-149
Journal Field
General
Author Count
2
Added to Database
2026-01-25