In this paper we propose benchmark values for the coefficients of relative risk aversionand relative prudence on the basis of a binary choice model where the decision makerchooses between aggregating or disaggregating multiplicative risks. We relate ourresults to the decision maker's willingness...

In this article, we consider illiquid life annuity contracts and show that they may be preferred to Yaari (1965)’s liquid contracts. In an overlapping-generation economy, liquid life annuities are demanded only if the equilibrium is dynamically inefficient. Alternatively, an equilibrium...

In this article, we consider illiquid life annuity contracts and show that they may be preferred to those illustrated by Yaari (1965). In an overlapping-generation economy, liquid life annuities are demanded only if the equilibrium is dynamically inefficient. Conversely, an equilibrium...

In this article, we consider illiquid life annuity contracts and show that they may be preferred to Yaari (1965)’s liquid contracts. In an overlapping-generation economy, liquid life annuities are demanded only if the equilibrium is dynamically inefficient. Alternatively, an equilibrium...

In this article, we study the optimal level of prevention in the face of an uncertainty on the health status. We analyze the individual choices of primary prevention and secondary prevention when the probability of appearance of the disease is not perfectly known. In order to distinguish the...