demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk …

other products by an unusually low elasticity of demand with respect to product failure. While consumers in other markets … potential cures accumulated over time. Because no one was ever cured and consumers possessed a highly inelastic demand with … respect to product failures, demand was unrelenting. In short, patent medicines flourished not despite their dubious medicinal …

necessarily law-invariant risk measure constraint. The objective function is an integral of some function U with respect to some … probability measure P, and the constraint set contains some risk measure constraint which is not necessarily P-law-invariant. This … manner, when a heterogeneity in the perception of uncertainty is introduced. Under a consistency requirement on the risk …

capital accumulation. In this paper, we consider a firm facing a linear demand function with additive shocks and present a …