Ho, Chun-Yu; Ho, Wai-Yip Alex; Li, Dan - In: Applied Economics Letters 19 (2012) 9, pp. 801-806
This note examines the role of risk aversion in computing the welfare cost of consumption fluctuations under different utility and consumption process specifications. We find that the welfare cost of consumption fluctuations under a Constant-Relative-Risk-Aversion (CRRA) utility specification...