relative risk aversion or decreasing absolute risk aversion, we prove that (1) the fact that growth is uncertain reduces the …

progress induces earlier prevention effort only if prudence is larger than twice absolute risk aversion. This paper thus …

We examine asset prices in a representative-agent model of general equilibrium. Assuming only that individuals are risk … averse, we determine conditions on the changes in asset risk that are both necessary and sufficientfor the asset price to … incomplete in the sense of containing an uninsurable background risk, such as a risk on labor income. We extend our model to show …

Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk …-Expected Utility and Risk Management examines whether the existing results in insurance economics are robust to more general models of … behavior under risk …

, in the absence of any risk-sharing scheme. We consider an economy in which the initial consumption level and the … distribution of consumption growth are heterogeneous. The benchmark case is when inequalities are permanent and relative risk … aversion is constant. The discount rate is not affected by inequalities in that case. We first relax the assumption on risk …