A MICROECONOMETRIC ANALYSIS OF RISK-AVERSION AND THE DECISION TO SELF-INSURE
A MICROECONOMETRIC ANALYSIS OF RISK-AVERSION AND THE DECISION TO SELF-INSURE
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DOI:
10.1086/261925
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发表时间:
1994-02-01
影响因子:
8.2
通讯作者:
DUBIN, JA
中科院分区:
文献类型:
--
作者:
CICCHETTI, CJ;DUBIN, JA
This study estimates a von Neumann-Morgenstern utility function using market data and microeconometric methods. We investigate the decision whether to purchase insurance against the risk of telephone line trouble in the home. Using the choices of approximately 10,000 residential customers, we determine the shape of the utility function and the degree of risk aversion. We find that risk aversion varies systematically in the population and varies with the level of income and that the observed choice behavior is consistent with expected utility maximization.