Health and portfolio choices : a diffidence ...
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
Health and portfolio choices : a diffidence approach
Author(s) :
Crainich, David [Auteur]
IÉSEG School Of Management [Puteaux]
Lille économie management - UMR 9221 [LEM]
Eeckhoudt, Louis [Auteur]
IÉSEG School Of Management [Puteaux]
Lille économie management - UMR 9221 [LEM]
Le Courtois, Olivier [Auteur]
EMLyon Business School [EM]

IÉSEG School Of Management [Puteaux]
Lille économie management - UMR 9221 [LEM]
Eeckhoudt, Louis [Auteur]
IÉSEG School Of Management [Puteaux]
Lille économie management - UMR 9221 [LEM]
Le Courtois, Olivier [Auteur]
EMLyon Business School [EM]
Journal title :
European Journal of Operational Research
Pages :
273-279 p.
Publisher :
Elsevier
Publication date :
2017-05-16
ISSN :
0377-2217
English keyword(s) :
Wealth
Diffidence Theorem
Indices
Correlation Aversion
Cross Prudence
Health
Diffidence Theorem
Indices
Correlation Aversion
Cross Prudence
Health
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
Sciences de l'Homme et Société/Gestion et management
Sciences de l'Homme et Société/Gestion et management
English abstract : [en]
The effect of health status on portfolio decisions has been extensively studied from an empirical viewpoint. In this paper, we propose a theoretical model of individuals’ choice of financial assets under bivariate utility ...
Show more >The effect of health status on portfolio decisions has been extensively studied from an empirical viewpoint. In this paper, we propose a theoretical model of individuals’ choice of financial assets under bivariate utility functions depending on wealth and health. Our approach makes an extensive use of the diffidence theorem. We establish the conditions under which the share of wealth held in risky assets falls as: 1) individuals’ health status deteriorates and; 2) individuals’ health status becomes risky. These conditions are shown to be related to the behaviour of the intensities of correlation aversion and of cross prudence as wealth increases.<br />Show less >
Show more >The effect of health status on portfolio decisions has been extensively studied from an empirical viewpoint. In this paper, we propose a theoretical model of individuals’ choice of financial assets under bivariate utility functions depending on wealth and health. Our approach makes an extensive use of the diffidence theorem. We establish the conditions under which the share of wealth held in risky assets falls as: 1) individuals’ health status deteriorates and; 2) individuals’ health status becomes risky. These conditions are shown to be related to the behaviour of the intensities of correlation aversion and of cross prudence as wealth increases.<br />Show less >
Language :
Anglais
Popular science :
Non
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