The Flexible Three Parameter Utility Function

نویسندگان

  • Denis Conniffe
  • DENIS CONNIFFE
چکیده

Many mathematical forms of utility functions have been considered in the economics and finance literature, although, as Xie (2000) has said, by far the most widely employed are those displaying constant relative risk aversion (CRRA). Xie pointed out the dangers implicit in an inappropriate assumption of CRRA and the desirability of more flexible utility functions permitting a greater range of risk aversion properties. He argued that the power risk aversion (PRA) utility function.

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تاریخ انتشار 2008