Prevention as a Giffen good

Richard Peter

Economics Letters, 2021, vol. 208, issue C

Abstract: A criterion is provided for prevention to be a Giffen good. Under decreasing absolute risk aversion, prevention can only be Giffen if the loss probability is below an endogenous threshold value. For iso-elastic utility, this is possible but not empirically plausible.

Keywords: Prevention; Self-protection; Giffen good; Risk aversion; Comparative statics (search for similar items in EconPapers)
JEL-codes: D11 D81 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:208:y:2021:i:c:s0165176521003293

DOI: 10.1016/j.econlet.2021.110052

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