American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Testing Efficient Risk Sharing with Heterogeneous Risk Preferences: Comment
American Economic Review
vol. 108,
no. 10, October 2018
(pp. 3104–13)
Abstract
Mazzocco and Saini (2012) propose and implement a test of efficient risk sharing that allows for preference heterogeneity. They motivate their approach as yielding different results from those of standard efficiency test with homogeneous preferences. We show that the standard efficiency test results are misreported in their paper and that the correctly reported results do not present as compelling a case for the importance of accounting for heterogeneous preferences.Citation
Shrinivas, Aditya, and Marcel Fafchamps. 2018. "Testing Efficient Risk Sharing with Heterogeneous Risk Preferences: Comment." American Economic Review, 108 (10): 3104–13. DOI: 10.1257/aer.20170413Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D81 Criteria for Decision-Making under Risk and Uncertainty
- G22 Insurance; Insurance Companies; Actuarial Studies
- O12 Microeconomic Analyses of Economic Development
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification