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New Methods in the Classical Economics of Uncertainty: Comparing Risks

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Author Info
Gollier, C.
Kimball, M.S.

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Abstract

In addition to showing the connection between parallel contingent and noncontingent risk comparison problems, we articulate a method for solving both kinds of problems using the "basis" approach. The basis approach has often been used implicitly, but we argue that there is value to making its use explicit, particularly in indicating which new, previously unsolved problems can readily be solved by the basis approach and which cannot.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 96.412.

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Length: 20 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:gremaq:96.412

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Postal: GREMAQ, Universite de Toulouse I Place Anatole France 31042 - Toulouse CEDEX France.
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Web page: http://www-gremaq.univ-tlse1.fr/
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Related research
Keywords: ECONOMETRICS; UNCERTAINTY; RISK;

Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Other
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

Cited by:
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  1. GOLLIER, Christian, 2005. "Optimal Illusions and Decisions under Risk," IDEI Working Papers 340, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
  2. Jordi Caballe & Joan Ma. Esteban, 2002. "Stochastic Dominance and Absolute Risk Aversion," UFAE and IAE Working Papers 506.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
    Other versions:
  3. Harris Schlesinger & Christian Gollier, 2001. "Changes in Risk and Asset Prices," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
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This page was last updated on 2009-10-24.


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