Precautionary insurance demand with state-dependent background risk

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FEI, Wenan, Harris SCHLESINGER, 2008. Precautionary insurance demand with state-dependent background risk. In: The Journal of Risk and Insurance. Wiley-Blackwell. 75(1), pp. 1-16. ISSN 0022-4367. eISSN 1539-6975. Available under: doi: 10.1111/j.1539-6975.2007.00245.x

@article{Fei2008Preca-58674, title={Precautionary insurance demand with state-dependent background risk}, year={2008}, doi={10.1111/j.1539-6975.2007.00245.x}, number={1}, volume={75}, issn={0022-4367}, journal={The Journal of Risk and Insurance}, pages={1--16}, author={Fei, Wenan and Schlesinger, Harris} }

<rdf:RDF xmlns:dcterms="" xmlns:dc="" xmlns:rdf="" xmlns:bibo="" xmlns:dspace="" xmlns:foaf="" xmlns:void="" xmlns:xsd="" > <rdf:Description rdf:about=""> <dc:creator>Schlesinger, Harris</dc:creator> <dcterms:isPartOf rdf:resource=""/> <bibo:uri rdf:resource=""/> <dc:creator>Fei, Wenan</dc:creator> <dcterms:title>Precautionary insurance demand with state-dependent background risk</dcterms:title> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> <dc:language>eng</dc:language> <foaf:homepage rdf:resource="http://localhost:8080/jspui"/> <dcterms:available rdf:datatype="">2022-09-21T13:43:09Z</dcterms:available> <dcterms:issued>2008</dcterms:issued> <dspace:isPartOfCollection rdf:resource=""/> <dc:contributor>Schlesinger, Harris</dc:contributor> <dc:date rdf:datatype="">2022-09-21T13:43:09Z</dc:date> <dcterms:abstract xml:lang="eng">This article considers a zero-mean background risk that is uncorrelated with insurable losses, but is not necessarily statistically independent. In particular, the size of the background risk can vary in different insurable-loss states. We show how a prudent individual will buy either more insurance or less insurance than with no background risk, depending on the relative size of the background risk in the loss states vis-á-vis the no-loss states. If we consider two individuals, with one more risk averse than the other, we need to compare the intensities of their precautionary motives, in addition to their measures of risk aversion, before we can determine who buys more insurance coverage in the presence of the state dependent background risk.</dcterms:abstract> <dc:contributor>Fei, Wenan</dc:contributor> </rdf:Description> </rdf:RDF>

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