This paper analyzes the effect of increases in risk aversion on a general consumer choice model with multiple sources of risk. Sufficient - and in the two commodity case, necessary - conditions for a given demand function to increase (or decrease) with increased risk aversion are derived. These general results are illustrated with a two period consumption-savings model.
CITATION STYLE
Schlee, E. E. (1990). Multivariate Risk Aversion and Consumer Choice. International Economic Review, 31(3), 737. https://doi.org/10.2307/2527172
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