State-Dependent Preferences and Insurance Demand

    Aktivität: VortragWissenschaftlicher Vortrag (Science-to-Science)

    Beschreibung

    We compare the demand for insurance under state-dependent and state-independent preferences when allowing for positive premium loading and continuous state space. We show that monotonicity of marginal utility across states is not sufficient to yield unambiguous comparative results--as it is under a fair premium. Nevertheless, unambiguous results can be derived for a specified set of state-independent preferences if both marginal utility and absolute degree of risk aversion are monotonic across states.
    Zeitraum21 Sept. 200923 Sept. 2009
    EreignistitelSeminar of the European Group of Risk and Insurance Economists 2009
    VeranstaltungstypKeine Angaben
    BekanntheitsgradInternational