Sinn, Hans-Werner
(1982):
Kinked utility and the demand for human wealth and liability insurance.
In: European Economic Review, Vol. 17, No. 2: pp. 149-162
External fulltext: http://www.sciencedirect.com/science/article/B6V64-4GJVF56-2/2/34c086a848d278990a57c456f4f0db75
Abstract
The paper advances the hypothesis that the ’gross wealth’ von Neumann/Morgenstern utility function is characterized by a horizontal branch for wealth levels below the socially guaranteed minimum wealth and analyses the implications of this property for human wealth and liability insurance. It turns out that the attractiveness of these kinds of insurance might, even for risk-averse people, be too low to satisfy the premium requirements of private insurance companies.
| Item Type: | Journal article |
|---|---|
| Faculties: | Economics Economics > Chairs > Chair for Public Economics |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| Item ID: | 19909 |
| Date Deposited: | 15. Apr 2014 08:54 |
| Last Modified: | 29. Apr 2016 09:17 |
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