Intertemporal risk aversion – or – wouldn’t it be nice to tell whether Robinson Crusoe is risk averse?

The paper introduces a new notion of risk aversion that is independent of the good under observation and its measure scale. The representational framework builds on a time consistent combination of additive separability on certain consumption paths and the von Neumann & Morgenstern (1944) assumptions. In the one-commodity special case, the new notion of risk aversion closely relates to a disentanglement of standard risk aversion and intertemporal substitutability.

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Year of publication:	2010-05
Authors:	Traeger, Christian P.
Institutions:	Department of Agricultural and Resource Economics, University of California-Berkeley
Subject:	uncertainty \| expected utility \| recursive utility \| risk aversion \| intertemporal substitutability \| certainty additivity \| temporal lotteries \| gauge-freedom \| intertemporal risk aversion

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Extent:	application/pdf
Series:	CUDARE Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 1102 53 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009646057