Using a model of bivariate decision under risk of disease, with separates the financial losses from the health losses … demand for self-protection and the demand for self-insurance as well as the impact of the risk aversion on each of these two …

captures two aspects of preferences: as the concavity of the function increases so does his aversion to risk as well as his … ensuing risk aversion measure (1-α) should not be considered as a simple Arrow-Pratt index of relative risk aversion that … recursive utility model introduces risk aversion through the definition of a certainty equivalent of future utility that mixes …

This paper investigates the importance of market incompleteness by comparing the rates of risk aversion estimated from … preferable because state-level data are less susceptible to measurement errors. We find that the rate of risk aversion under the … of consumption growth in the pricing kernel lowers the estimate of risk aversion. These findings suggest that market …