Journal article
Prevention as a Giffen good
Economics letters, Vol.208, pp.1-5
11/01/2021
DOI: 10.1016/j.econlet.2021.110052
Abstract
A criterion is provided for prevention to be a Giffen good. Under decreasing absolute risk aversion, prevention can only be Giffen if the loss probability is below an endogenous threshold value. For iso-elastic utility, this is possible but not empirically plausible.
•Prevention can be a Giffen good.•A criterion is provided for prevention to be Giffen.•Under DARA, prevention can only be Giffen if the loss probability is small enough.•The threshold is calculated and analyzed for iso-elastic utility.
Details
- Title: Subtitle
- Prevention as a Giffen good
- Creators
- Richard Peter - University of Iowa, Department of Finance, United States of America
- Resource Type
- Journal article
- Publication Details
- Economics letters, Vol.208, pp.1-5
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.econlet.2021.110052
- ISSN
- 0165-1765
- eISSN
- 1873-7374
- Language
- English
- Date published
- 11/01/2021
- Academic Unit
- Finance
- Record Identifier
- 9984380447902771
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