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Prevention as a Giffen good
Economics Letters ( IF 2.1 ) Pub Date : 2021-09-01 , DOI: 10.1016/j.econlet.2021.110052
Richard Peter 1
Affiliation  

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.



中文翻译:

预防是吉芬的好处

为预防成为吉芬商品提供了一个标准。在降低绝对风险规避的情况下,只有当损失概率低于内生阈值时,预防才能成为吉芬。对于等弹性效用,这是可能的,但在经验上不合理。

更新日期:2021-09-01
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