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Constant relative risk aversion and form equivalence classes

Author

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  • Battermann, Harald L.
  • Broll, Udo
  • Wahl, Jack E.

Abstract

We derive a class of utility functions that are equivalent with respect to a well-defined functional form. We apply a general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results with standard applications in economics and finance.

Suggested Citation

  • Battermann, Harald L. & Broll, Udo & Wahl, Jack E., 1997. "Constant relative risk aversion and form equivalence classes," Discussion Papers, Series II 345, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:345
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    References listed on IDEAS

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    1. Soriano-Morales, Y. V. & Vallejo-Jiménez, Benjamín & Venegas-Martínez, Francisco, 2017. "Impact of the degree of relative risk aversion, the interest rate and the exchange rate depreciation on economic welfare in a small open economy," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 13(25), pages 7-24, Primer se.
    2. Olita, Toto & Schilizzi, Steven & Iftekhar, Sayed, 2023. "Mitigating Risky Conservation Tenders: Can an Insurance Mechanism Be a Solution?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.

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    Keywords

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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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