Abstract
A measure for the relative degree of risk aversion in higher dimensions is proposed. It is shown that the measure possesses all the properties considered by Kihlstrom and Mirman. Finally a generalisation of the concepts of increasing, decreasing constant relative degrees of risk aversion to a class of non-homothetic utility functions is made.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.