Cavatorta, Elisa; Pieroni, Luca - Landbouw-Economisch Institut (LEI), Wageningen … - 2012
This paper explores behavioural changes resulting from the presence of a back- ground risk. Due to markets incompleteness, not all risks are insurable. The lit- erature suggests that, according to the structure of preferences, agents bearing a background uninsurable risk are less willing to bear...