Risk Preference and Indirect Utility in Portfolio-Choice Problems

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dc.contributor.author ROY, Santanu
dc.contributor.author WAGENVOORT, Rien J.L.M.
dc.date.accessioned 2011-05-09T15:12:58Z
dc.date.available 2011-05-09T15:12:58Z
dc.date.issued 1996
dc.identifier.citation Journal of Economics-Zeitschrift Fur Nationalokonomie, 1996, 63, 2, 139-150
dc.identifier.issn 0931-8658
dc.identifier.uri http://hdl.handle.net/1814/17089
dc.description.abstract We consider a portfolio-choice problem with one risky and one safe asset, where the utility function exhibits decreasing absolute risk aversion (DARA). We show that the indirect utility function of the portfolio-choice problem need not exhibit DARA. However, if the (optimal) marginal propensity to invest is positive for both assets, which is true when the utility function exhibits non-decreasing relative risk aversion, then the DARA property is carried over from the direct to the indirect utility function.
dc.title Risk Preference and Indirect Utility in Portfolio-Choice Problems
dc.type Article
dc.neeo.contributor ROY|Santanu|aut|
dc.neeo.contributor WAGENVOORT|Rien|aut|
dc.identifier.volume 63
dc.identifier.startpage 139
dc.identifier.endpage 150
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dc.identifier.issue 2


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