On social preferences and the intensity of risk aversion
On social preferences and the intensity of risk aversion
Dokument öffnen (781KB)Datum der Veröffentlichung
05.2018Verlag / herausgebende Einrichtung
Center for Development Research (ZEF), University of BonnVerlagsort
BonnMetadaten
Zur Langanzeige
Zitierbarer Link (Handle URI) 
https://hdl.handle.net/20.500.11811/12109
Inhalt
We study the relative risk aversion of an individual with particular social preferences: his wellbeing is influenced by his relative wealth, and by how concerned he is about having low relative wealth. Holding constant the individual’s absolute wealth, we obtain two results. First, if the individual’s level of concern about low relative wealth does not change, the individual becomes more risk averse when he rises in the wealth hierarchy. Second, if the individual’s level omoref concern about low relative wealth intensifies when he rises in the wealth hierarchy and if, in precise sense, this intensification is strong enough, then the individual becomes less risk averse: the individual’s desire to advance further in the wealth hierarchy is more important to him than possibly missing out on a better rank.
Schlagwörter
Relative risk aversion, Wealth rank, Concern about low relative wealth
Klassifikation (DDC)
300 Sozialwissenschaften, Soziologie, Anthropologie 320 Politik 330 WirtschaftErstpublikation
https://www.zef.de/fileadmin/user_upload/ZEF_DP_259_OS.pdfReihe, Nummer
ZEF-Discussion Papers on Development Policy ; 259Stark, Oded: On social preferences and the intensity of risk aversion. Bonn: Center for Development Research (ZEF), University of Bonn, 2018. In: ZEF-Discussion Papers on Development Policy, 259.
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12109
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12109
@techreport{handle:20.500.11811/12109,
author = {{Oded Stark}},
title = {On social preferences and the intensity of risk aversion},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2018,
month = may,
series = {ZEF-Discussion Papers on Development Policy},
volume = 259,
note = {We study the relative risk aversion of an individual with particular social preferences: his wellbeing is influenced by his relative wealth, and by how concerned he is about having low relative wealth. Holding constant the individual’s absolute wealth, we obtain two results. First, if the individual’s level of concern about low relative wealth does not change, the individual becomes more risk averse when he rises in the wealth hierarchy. Second, if the individual’s level omoref concern about low relative wealth intensifies when he rises in the wealth hierarchy and if, in precise sense, this intensification is strong enough, then the individual becomes less risk averse: the individual’s desire to advance further in the wealth hierarchy is more important to him than possibly missing out on a better rank.},
url = {https://hdl.handle.net/20.500.11811/12109}
}
author = {{Oded Stark}},
title = {On social preferences and the intensity of risk aversion},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2018,
month = may,
series = {ZEF-Discussion Papers on Development Policy},
volume = 259,
note = {We study the relative risk aversion of an individual with particular social preferences: his wellbeing is influenced by his relative wealth, and by how concerned he is about having low relative wealth. Holding constant the individual’s absolute wealth, we obtain two results. First, if the individual’s level of concern about low relative wealth does not change, the individual becomes more risk averse when he rises in the wealth hierarchy. Second, if the individual’s level omoref concern about low relative wealth intensifies when he rises in the wealth hierarchy and if, in precise sense, this intensification is strong enough, then the individual becomes less risk averse: the individual’s desire to advance further in the wealth hierarchy is more important to him than possibly missing out on a better rank.},
url = {https://hdl.handle.net/20.500.11811/12109}
}
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