Activity: Talk or presentation › Science to science
Description
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.
Period
21 Sept 2009 → 23 Sept 2009
Event title
Seminar of the European Group of Risk and Insurance Economists 2009