IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The risk premium and the effects of risk on utility

Listed author(s):
  • M. Menegatti

    ()

This work shows that the risk premium can be a mistaken measure of the reduction in utility caused by uncertainty since, when different level of wealth are considered, the relative size of the former is related to that of the latter only in some cases. The analysis indicates that this is because the size of the risk premium depends both on the size of the disutility of risk and on the size of the marginal utility of money. Some simple economic problems where this conclusion is relevant are also examined.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2007-10.pdf
Download Restriction: no

Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2007-EP10.

as
in new window

Length: 10 pages
Date of creation: 2007
Handle: RePEc:par:dipeco:2007-ep10
Contact details of provider: Postal:
Via J.F. Kennedy 6, 43100 PARMA (Italy)

Phone: 0521/902454
Fax: 0521/902400
Web page: http://economia.unipr.it/de
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:par:dipeco:2007-ep10. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrea Lasagni)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.