Add to ORKGThis paper shows that the precautionary premium embodies a tradeoff between risk and downside risk. It is the size of a mean-preserving spread for which the strength of aversion to risk just offsets the strength of aversion to downside risk. Using this result, decreasing absolute prudence can be interpreted as meaning that the amount of exposure to risk (as measured by a spread) for which aversion to risk just offsets aversion to downside risk decreases as wealth increases. This happens when an increase in wealth causes a smaller percentage change in absolute downside risk aversion than in absolute risk aversion
While there is no abstract for this paper, it makes an argument that relative risk aversion is decre...
Kimball, 1990a and Kimball, 1990b established that income risk increases the marginal propensity to ...
We provide comparative global conditions for downside risk aversion, which are similar to the ones s...
This paper shows that the precautionary premium embodies a tradeoff between risk and downside risk. ...
The relationship between willingness to pay (WTP) to reduce the probability of an adverse event and ...
International audienceThe relationship between willingness to pay (WTP) to reduce the probability of...
Downside risk aversion (downside RA) and decreasing absolute risk aversion (DARA) are different conc...
The degree of downside risk aversion (or equivalently prudence) is so far usually measured by -U'''/...
We search for a definition of the downside risk premium analogous to the Pratt–Arrow definition of t...
In this paper, we show that risk vulnerability can be associated with the concept of downside risk a...
This paper shows that the notions of prudence, temperance, edginess, and, more generally, risk appor...
In this paper we extend the theory of precautionary saving to the case in which uncertainty is multi...
In addition to risk aversion, decision-makers tend to be also downside risk averse. Besides the usua...
This paper shows that the notions of prudence, temperance, edginess, and, more generally, risk appor...
We consider the risk premium demanded by a decision maker with wealth x in order to be indifferent b...
While there is no abstract for this paper, it makes an argument that relative risk aversion is decre...
Kimball, 1990a and Kimball, 1990b established that income risk increases the marginal propensity to ...
We provide comparative global conditions for downside risk aversion, which are similar to the ones s...
This paper shows that the precautionary premium embodies a tradeoff between risk and downside risk. ...
The relationship between willingness to pay (WTP) to reduce the probability of an adverse event and ...
International audienceThe relationship between willingness to pay (WTP) to reduce the probability of...
Downside risk aversion (downside RA) and decreasing absolute risk aversion (DARA) are different conc...
The degree of downside risk aversion (or equivalently prudence) is so far usually measured by -U'''/...
We search for a definition of the downside risk premium analogous to the Pratt–Arrow definition of t...
In this paper, we show that risk vulnerability can be associated with the concept of downside risk a...
This paper shows that the notions of prudence, temperance, edginess, and, more generally, risk appor...
In this paper we extend the theory of precautionary saving to the case in which uncertainty is multi...
In addition to risk aversion, decision-makers tend to be also downside risk averse. Besides the usua...
This paper shows that the notions of prudence, temperance, edginess, and, more generally, risk appor...
We consider the risk premium demanded by a decision maker with wealth x in order to be indifferent b...
While there is no abstract for this paper, it makes an argument that relative risk aversion is decre...
Kimball, 1990a and Kimball, 1990b established that income risk increases the marginal propensity to ...
We provide comparative global conditions for downside risk aversion, which are similar to the ones s...