Bellemare, Marc F.; Brown, Zachary S. - In: American Journal of Agricultural Economics 92 (2010) 1, pp. 273-282
Tests of risk sharing in the contracting literature often rely on wealth as a proxy for risk aversion. The intuition behind these tests is that since contract choice is monotonic in the coefficients of risk aversion, which are themselves assumed monotonic in wealth, the effect of a change in...