Income risk aversion with quantity constraints

Fred Schroyen ()
Additional contact information
Fred Schroyen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway

No 8/2010, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: In this paper, I consider a consumer with a concave utility function over n commodities and trace out the consequences of quantity constraints on product markets for the consumer’s aversion towards income risk. I show that the effect can be decomposed in a cardinal and ordinal term, that both terms may add up to a non-linear effct on the coefficient of relative risk aversion, and that a severely rationed consumer may even become less risk averse then when unconstrained.

Keywords: Household demand; income risk aversion; quantity constraints. (search for similar items in EconPapers)
JEL-codes: D11 D81 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2010-02-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.nhh.no/Admin/Public/DWSDownload.aspx?Fi ... pers%2f2010%2f08.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.nhh.no:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:nhheco:2010_008

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Synne Stormoen ().