A Note on the Generalised Measures of Risk Aversion
(Originally published in Journal of Economic Theory (1983), 29, 347-352) - This paper is concerned with generalised scalar measures of risk aversion. A measure R which may meaningfully be applied to both unidimensional risks (risk in income or wealth) and multidimensional risks has been constructed. In case of iden- tical preferences, we have also constructed an alternative measure of risk aversion R* which is shown to be related to the Khilstrom-Mirman measure. This relationship explains the nature of the Khilstrom-Mirman measure. Journal of Economic Literature Classification Numbers: 021, 022, 026.