Background risk and self-protection

Kangoh Lee

Economics Letters, 2012, vol. 114, issue 3, 262-264

Abstract: The presence of background risk increases self-protection effort or caution as long as an agent is prudent. In addition, the result extends to monetary self-protection investment if wealth and consumption are complements.

Keywords: Self-protection; Background risk; Prudence (search for similar items in EconPapers)
JEL-codes: D81 G22 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:3:p:262-264

DOI: 10.1016/j.econlet.2011.10.018

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