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 basis of a binary choice model where the decision maker chooses between aggregating or disaggragating multiplicative risks. We relate our results to the decison maker's...