A note on quasi-hyperbolic discounting, risk aversion, and the demand for insurance

Link:
Autor/in:
Erscheinungsjahr:
2014
Medientyp:
Text
Schlagworte:
  • Insurance demand
  • quasi-hyperbolic discounting
  • liquidity constraints
  • risk aversion
Beschreibung:
  • We show that quasi-hyperbolic discounting not only affects savings decisions but also the demand for insurance. In general, insurance demand by quasi-hyperbolic discounters is time-inconsistent. Without liquidity constraints they buy more insurance than initially planned. In the presence of binding liquidity constraints, hyperbolic discounters tend to revise their insurance demand downwards.
Lizenz:
  • info:eu-repo/semantics/openAccess
Quellsystem:
Forschungsinformationssystem der UHH

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Quelldatensatz
oai:www.edit.fis.uni-hamburg.de:publications/12976866-51c4-4d38-b33b-7ddf7673e792