Intensity of preferences for bivariate risk apportionment
| Autor: | Olivier Le Courtois, Louis Eeckhoudt, David Crainich |
|---|---|
| Přispěvatelé: | Lille économie management - UMR 9221 (LEM), Université d'Artois (UA)-Université catholique de Lille (UCL)-Université de Lille-Centre National de la Recherche Scientifique (CNRS), ANR-17-CE03-0008,INDUCED,Intégration de l'incertitude profonde dans la modélisation des changements climatiques(2017) |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
Medical treatment Applied Mathematics 05 social sciences Univariate Marginal rate of substitution Ross risk aversion Bivariate analysis Comparative risk aversion [SHS.ECO]Humanities and Social Sciences/Economics and Finance Measure (mathematics) Preference Increase in bivariate risks [SHS]Humanities and Social Sciences Bivariate utility function Apportionment 0502 economics and business Econometrics 050206 economic theory Risk apportionment Psychology Intensity (heat transfer) 050205 econometrics |
| Zdroj: | Journal of Mathematical Economics Journal of Mathematical Economics, Elsevier, 2020, 88, pp.153-160. ⟨10.1016/j.jmateco.2020.03.007⟩ Journal of Mathematical Economics, 2020, 88, pp.153-160. ⟨10.1016/j.jmateco.2020.03.007⟩ |
| ISSN: | 0304-4068 |
| DOI: | 10.1016/j.jmateco.2020.03.007⟩ |
| Popis: | International audience; Bivariate risk apportionment is the preference for dispersing risks associated with two aspects of individuals’ well-being into different states of the world. In this paper, we propose an intensity measure of this preference by extending to the bivariate case the concept of marginal rate of substitution between risks of different orders introduced in the univariate case by Liu and Meyer (2013). We show that the intensity measure of the preference for bivariate risk apportionment is characterized by bivariate risk attitudes in the sense of Ross. The usefulness of our measures to understand economic choices is illustrated by the analysis of two specific decisions: savings under environmental risk and medical treatment in the presence of diagnostic risks. |
| Databáze: | OpenAIRE |
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