EECKHOUDT, Louis; ETNER, Johanna; SCHROYEN, Fred - Center for Operations Research and Econometrics (CORE), … - 2007
In this paper we propose benchmark values for the coefficients of relative risk aversion and relative prudence on the … and the
third (central) moment of his wealth distribution.
Keywords: relative risk aversion, relative prudence.
JEL … that unity is a benchmark value for the
coefficient of relative risk aversion (RRA for short; defined as −u′′(X)u′(X) X …