If individuals are risk averse, why do they care more about large losses-that is, why are they
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If individuals are risk averse, why do they care more about large losses-that is, why are they willing to pay a larger amount in excess of the actuarial value of the losses for insurance ? What does this imply for the design of social insurance ?
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Individuals are often more riskaverse when it comes to large losses because the impact of such ...View the full answer
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Related Book For
Economics Of The Public Sector
ISBN: 9780393925227
4th Edition
Authors: Joseph E. Stiglitz, Jay K. Rosengard
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