Showing 1 - 10 of 90
we identify conditions under which preferences over sets of construction opportunities can be reduced to preferences …
Persistent link: https://www.econbiz.de/10005346001
Building on Kihlstrom and Mirman (1974)’s formulation of risk aversion in the case of multidimensional utility functions, we study the effect of risk aversion on optimal behavior in a general consumer’s maximization problem under uncertainty. We completely characterize the relationship...
Persistent link: https://www.econbiz.de/10009324263
strongly separable preferences. Using the Kihlstrom and Mirman (1974) (KM) utility representation, we show that the effect of …
Persistent link: https://www.econbiz.de/10010728904
We identify conditions under which preferences over sets of consumption opportunities can be reduced to preferences …
Persistent link: https://www.econbiz.de/10005545658
We employ the theory of rational choice to examine whether observable choices from feasible sets of prospects can be generated by the optimization of some underlying decision criterion under uncertainty. Rather than focusing on a specific theory of choice, our objective is to formulate a general...
Persistent link: https://www.econbiz.de/10010933662
We employ the theory of rational choice to examine whether observable choices from feasible sets of prospects can be generated by the optimization of some underlying decision criterion under uncertainty. Rather than focusing on a specific theory of choice, our objective is to formulate a general...
Persistent link: https://www.econbiz.de/10010616513
We develop a model where families consist of one parent and one child, with children diering in income and all agents having the same probability of becoming dependent when old. Young and old individuals vote over the size of a social long term care transfer program, which children complement...
Persistent link: https://www.econbiz.de/10011272148
This paper estimates a reduced form model of the Canadian mortgage demand from 1971 to 2010. Three equations are estimated, one for the average real value of new mortgage loans originated, another one for the number of new loans and a third for the flow of real repayment of existing loans. The...
Persistent link: https://www.econbiz.de/10011272945
We examine how long-term life insurance contracts can be designed to incorporate uncertain future bequest needs. An individual who buys a life insurance contract early in life is often uncertain about the make up of his or her future family, much less their financial needs. Ideally, the...
Persistent link: https://www.econbiz.de/10005015253
The standard model of intertemporal choice assumes risk neutrality toward the length of life: due to additivity, agents are not sensitive to a mean preserving spread in the length of life. Using a survey fielded in the RAND American Life Panel (ALP), this paper provides empirical evidence on...
Persistent link: https://www.econbiz.de/10010633103