2008-12-01
Explaining the Characteristics of the Power (CRRA) Utility Family
Publication
Publication
Health Economics , Volume 17 - Issue 12 p. 1329- 1344
The 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
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| doi.org/10.1002/hec.1331, hdl.handle.net/1765/17474 | |
| Health Economics | |
| Organisation | Erasmus Research Institute of Management |
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Wakker, P. (2008). Explaining the Characteristics of the Power (CRRA) Utility Family. Health Economics, 17(12), 1329–1344. doi:10.1002/hec.1331 |
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