Precautionary Effort: A New Look
Journal
Journal of Risk and Insurance
Journal Volume
79
Journal Issue
2
Pages
585-590
Date Issued
2012
Author(s)
Abstract
While the concept of precautionary saving is well documented, that of precautionary effort has received relatively limited attention. In this note, we set up a two period model in order to analyze the conditions under which the introduction (or deterioration) of an independent background risk increases effort. ? The Journal of Risk and Insurance, 2012.
Type
journal article