Risk-Aversion and the Investment-Uncertainty Relationship: A CommentJournal of Economic Behavior & Organization (2005)
This paper shows that the solution of Nakamura’s [Journal of Economic Behavior and Organization 38 (1999) 357] model is incorrect. We propose an alternative framework that allows us to obtain closed form results on the investment-uncertainty relationship.
- Risk aversion,
- Intertemporal substitution
Publication DateJanuary, 2005
Citation InformationEnrico Saltari and Davide Ticchi. "Risk-Aversion and the Investment-Uncertainty Relationship: A Comment." Journal of Economic Behavior & Organization, 2005, 56(1), 121-125.