Econometrica Vol. 48 No. 4 1980
Multivariate Risk Independence and Functional Forms for Preferences and Technologies
Abstract
The comparative static effects of increased uncertainty in standard two-period models of consumer and producer behavior under uncertainty have been shown in [10 and 11] to be complex. Two principal objectives of this paper are: (i) to describe some assumptions, forms of risk independence, about preferences and technologies, that simplify the behavioral effects of increased variability; and (ii) to characterize the preferences and technologies that are consistent with risk independence. The theory of duality plays an important part in the analysis.
- DOI
- 10.2307/1912942
- Volume
- 48
- Issue
- 4
- Pages
- 973
- Sources
- bibtex:phds-export.bib crossref openalex