RISK AVERSION REVISITED: A CLOSER LOOK AT MEANING AND MEASUREMENT

Contrary to popular belief, risk aversion is not always equivalent to concavity of the "utility of income" function. When this equivalence fails, Arrow-Pratt coefficients are not a meaningful measure of risk aversion. The pivotal issue is whether farmers' choices under risk are entirely determined by their choices under certainty.


Issue Date:
1986-07
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/278074
Language:
English
Total Pages:
15




 Record created 2018-10-11, last modified 2020-10-28

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