%0 Journal Article
%T Effect of increase in risk aversion on self-insurance in dynamic model
%A Piotr Dudzi¨½ski
%J Contemporary Economy
%D 2012
%I University of Gdansk
%X This work shows that in a two-period framework increase in risk-aversion is not a sufficient condition to invest more in self-insurance, as it is in one-period setting (Dionne and Eeckhoudt). We prove that other factors important for decision-making exist. Rela-tionship between size of loss and future and present income is crucial in this problem. We consider two cases ¨C when an effort to prevent risk precedes its effect and when it is sim-ultaneous. We show that those cases are mathematically and economically different.
%K Self-insurance
%K Risk aversion
%K Dynamic model
%U http://www.wspolczesnagospodarka.pl/?p=527