Heuvel, Skander van den - 2008
Strict temporal risk aversion holds if the inequality is strict. Temporal risk seeking is equivalent to
a positive cross … is to apply Jensen�s inequality to . Unfortunately, while
simpler, this leads to a weaker lower bound than the one … conditions:
Since x ! x is a convex mapping ( < 0), Jensen�s inequality implies that
(z; ) E[z + f1 jz] = z +P s=1 (E …