When can harms disaggregation imply precautionary effort?
Proceedings of 2014 China International Conference On Insurance And Risk Management
Tsinghua University Press
This paper proposes a comparative statics analysis for precautionary effort via Eeckhoudt and Schlesinger (2006)'s harms disaggregation idea. Within an expected-utility framework, we show that prudence alone implies precautionary effort.
Paper presented at the 5th China International Conference on Insurance and Risk Management (CICIRM), Jul 23-26, 2014, Shenzhen, China.
ISBN of the source publication: 9787893952586
Wang, J., & Li, J. (2015). When can harms disaggregation imply precautionary effort? In Proceedings of 2014 China International Conference On Insurance And Risk Management (pp. 596-600). Beijing: Tsinghua University Press.