Explaining the characteristics of the power (CRRA) utility family

descriptionPublicationkeyboard_double_arrow_right Article 22 Jan 2008 Netherlands English Publisher:WileyJournal:Health Economics, volume 17, pages 1,329-1,344 (issn: 1057-9230, eissn: 1099-1050,

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Authors: Wakker, P.P.;

doi: 10.1002/hec.1331

pmid: 18213676

Explaining the characteristics of the power (CRRA) utility family

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Abstract

AbstractThe power family, also known as the family of constant relative risk aversion (CRRA), is the most widely used parametric family for fitting utility functions to data. Its characteristics have, however, been little understood, and have led to numerous misunderstandings. This paper explains these characteristics in a manner accessible to a wide audience. Copyright © 2008 John Wiley & Sons, Ltd.

Country

Netherlands

Related Organizations

Erasmus University Rotterdam
Netherlands
Maastricht University
Netherlands
Erasmus+
Belgium

Keywords

Risk, Models, Statistical, Quality of Life, Humans, Models, Biological

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