Is Risk Taking Beneficial to the Insured and to Society?

Hong Mao, James M. Carson and Krzysztof M.Ostaszewski

Journal of Insurance Issues, 2018, vol. 41, issue 2, 215-230

Abstract: In this article, we discuss whether, and when, risk taking is beneficial to the insured and to the society at large. We establish models utilizing stochastic optimal control theory and obtain the optimal levels of risk taking from perspectives of both the insured and the society. As part of the analysis, we discuss the relation between insurance and excessive risk taking.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.insuranceissues.org/PDFs/412MCO.pdf (application/pdf)

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:wri:journl:v:41:y:2018:i:2:p:215-230

Access Statistics for this article

Journal of Insurance Issues is currently edited by James Barrese

More articles in Journal of Insurance Issues from Western Risk and Insurance Association
Bibliographic data for series maintained by James Barrese ().