The income effect under uncertainty: A Slutsky-like decomposition with risk aversion

C-Tier

Journal: Economic Modeling

Year: 2016

Volume: 55

Issue: C

Pages: 169-178

Authors (3)

Antoniadou, Elena Mirman, Leonard J. Santugini, Marc (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

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Abstract

We study the effect of changing income on optimal decisions in the multidimensional expected utility framework with strongly separable preferences. Using the Kihlstrom and Mirman (1974) (KM) utility representation, we show that the effect of changing income can be decomposed into a modified income effect linked to the classical income effect and an effect representing attitudes to risk, modified by income.

The income effect under uncertainty: A Slutsky-like decomposition with risk aversion

Authors (3)

Abstract

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