A More General Measure of Risk Aversion When Utility Is State-Dependent.

C-Tier
Journal: Oxford Economic Papers
Year: 1991
Volume: 43
Issue: 1
Pages: 59-74

Authors (2)

Kelsey, David (University of Nottingham) Nordquist, Gerald L (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

In this paper, the authors propose a method for comparing risk aversion within the state-dependent utility model. This model is useful for analyzing economic problems relating to health or life. The authors extend the Arrow-Pratt measure of risk aversion to the case where utility is state-dependent. Their measure is a generalization of earlier methods of comparing risk aversion in this context, since it agrees with them where they are defined, but can be applied to a much larger class of utility functions. The authors show how their analysis can be applied to a simple model of demand for insurance. Copyright 1991 by Royal Economic Society.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:43:y:1991:i:1:p:59-74
Journal Field
General
Author Count
2
Added to Database
2026-01-25