Eeckhoudt, Louis R. (contributor); … - 2007
the
coefficient of relative risk aversion (RRA for short; defined as −u′′(X)u′(X) X where
u is the vNM utility function …)togiveaninterpretationofthesignsofsuccessive
derivatives of a utility function in a context of additive risks. By considering
instead multiplicative risks, we … it to additive risks to justify the
alternating sign of successive derivatives of a utility function. In this way they
1 …