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Risk Aversion and the Choice between Risky Prospects: The Preservation of Comparative Statics Results

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Jewitt, Ian

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Abstract

Most results in the comparative sta tics of risk aversion are obtained when there is only one source of uncertainty. The primary example is that more risk-averse people are willing to pay a higher premium of insuring against risk. It is known that the results do notgenerally carry over when there is another source of uncertainty. Thepaper develops cond itions under which comparative statics results are robust against the introducti on of additional sources of uncertainty. Copyright 1987 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 54 (1987)
Issue (Month): 1 (January)
Pages: 73-85
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Handle: RePEc:bla:restud:v:54:y:1987:i:1:p:73-85

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