Liu, Liqun; Meyer, Jack - In: Journal of Economic Theory 148 (2013) 6, pp. 2706-2718
This paper defines the rate of substitution of one stochastic change to a random variable for another. It then focuses on the case where one of these changes is an nth degree risk increase, and the other is an mth degree risk increase, where nm⩾1. The paper shows that the rate of substitution...
