|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/26305
|
| | |
| Title: | | Property insurance, portfolio selection and their interdependence  |
| Authors: | | Chang, Fwu-Ranq |
| Issue Date: | | 2008 |
| Series/Report no.: | | CESifo working paper 2260 |
| Abstract: | | This paper studies the interdependence between property insurance and portfolio selection. The insurance premium of property loss is shown to play the role of subsistence consumption in the analysis. Then, security becomes a necessity good and an increase in any insurance parameter would make the investor more conservative. The effect of a stock market parameter on the marginal propensity to insure is shown to be opposite that on the marginal propensity to consume. Consequently, an increase in volatility would encourage those with a greater-than-unity relative risk aversion to purchase more insurance at the expense of current consumption. |
| Subjects: | | insurance premium subsistence consumption portfolio substitution optimal saving under uncertainty |
| JEL: | | G11 G22 E21 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/26305
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|