Wealth Equivalents, Risk Aversion, and the Marginal Benefit from Increased Safety
Abstract
In the paper it is shown that if a wealth equivalent to an undesirable event exists, then the assumption of risk aversion has strong and interesting implications for safety decisions. In addition, the authors set forth sufficient conditions for the existence of a wealth equivalent to a nonmonetary and undesirable event.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1974
- Accession Number
- AD0781375
Entities
People
- Michael K. Block
- Robert C. Lind
Organizations
- Naval Postgraduate School