Individual Property Risk Management
| Autor: | Michael S. Finke, Eric Belasco, Sandra J. Huston |
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| Jazyk: | angličtina |
| Rok vydání: | 2010 |
| Předmět: | |
| Zdroj: | Journal of Probability and Statistics, Vol 2010 (2010) |
| Druh dokumentu: | article |
| ISSN: | 1687-952X 1687-9538 |
| DOI: | 10.1155/2010/805309 |
| Popis: | This paper reviews household property risk management and estimates normatively optimal choice under theoretical assumptions. Although risk retention limits are common in the financial planning industry, estimates of optimal risk retention that include both financial and human wealth far exceed limits commonly recommended. Households appear to frame property losses differently from other wealth losses leading to wealth-reducing, excess risk transfer. Possible theoretical explanations for excess sensitivity to loss are reviewed. Differences between observed and optimal risk management imply a large potential gain from improved choice. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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