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2013
The Comparative Statics for the Subset of Second-Degree Stochastic Dominance Changes under Risk Aversion
The Comparative Statics for the Subset of Second-Degree Stochastic Dominance Changes under Risk Aversion
한국경제통상학회
논문정보
- Publisher
- 경제연구
- Issue Date
- 2013-02-28
- Keywords
- -
- Citation
- -
- Source
- -
- Journal Title
- -
- Volume
- 31
- Number
- 1
- Start Page
- 163
- End Page
- 175
- DOI
- ISSN
- 1225861X
Abstract
This paper identifies the special type of SSD shift and investigates restrictions in a very strong sense on a R-S decrease in risk which is the subset of SSD. We carry out its comparative static analysis for the decision maker. The risk averse decision maker, maximizing the expected value of utility , increases the optimal level of the (nonnegative) choice variable. We also discuss the properties of decision models and preferences derived from its comparative statics result. For the preferences of the decision makers, decreasing absolute risk aversion (DARA) and increasing relative risk aversion (IRRA) generally accepted as a reasonable attitude toward risk are sufficient.
- 전남대학교
- KCI
- 경제연구
저자 정보
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