Changing in Risk and Risk Taking: A Survey

Louis Eeckhoudt and Christian Gollier ()

Working Papers from Toulouse - GREMAQ

Abstract: We examine an important class of decision problem under uncertainty that entails the standarrd portfolio problem and the demand for coinsurance. The agent faces a controllable risk -his demand for a risky asset for example- and a background risk. We determine how a change in the distribution in one of these two risks affects the optimal exposure to thecontrollable risk. Restrictions to first order and scond order stochastic dominant orders are in general necessary to yield an unambiguous comparative statics property. We also present another line of research in which restrictions are made on preferences rather on stochastic dominance orders.

Keywords: INFORMATION (search for similar items in EconPapers)
JEL-codes: D80 G11 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (12)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:fth:gremaq:97.472

Access Statistics for this paper

More papers in Working Papers from Toulouse - GREMAQ GREMAQ, Universite de Toulouse I Place Anatole France 31042 - Toulouse CEDEX France.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().