Advertisement

Some Relationships Among FSD Shifts and R-S Increases in Risk

  • Iltae KimEmail author
  • Soojong Kim
  • Suyeol Ryu
Chapter
  • 6 Downloads

Abstract

This chapter clarifies some relationships among the subclasses of FSD shifts and R-S increases in risk and shows that most subsets of CDF changes are defined by imposing restrictions on the ratio between an initial and a final PDFs or CDFs. This chapter also summarizes the comparative statics results regarding the subclasses of FSD shifts and R-S increases in risk and shows that when the restrictions on the type of CDF change become less requiring, the restrictions on the risk preference of decision makers and structure of the concerned decision model are more required.

References

  1. Black, J.M., and G. Bulkley. 1989. A ratio criterion for signing the effect of an increases in uncertainty. International Economic Review 30: 119–130.CrossRefGoogle Scholar
  2. Dionne, G., L. Eeckhoudt, Gollier, C. 1993a. Increases in risk and linear payoffs. International Economic Review 34: 309–319.Google Scholar
  3. Dionne, G., L. Eeckhoudt, and Gollier, C. 1993b. Relatively weak increases in risk and their comparative statics. Economics Letters 41: 269–272.Google Scholar
  4. Eeckhoudt, L., and C. Gollier. 1995. Demand for risky assets and the monotone probability ratio order. Journal of Risk and Uncertainty 11: 113–122.CrossRefGoogle Scholar
  5. Kim, S., I. Kim, and S. Ryu. 2005. Left-side relatively strong increases in risk and their comparative statics. Seoul Journal of Economics 18: 45–57.Google Scholar
  6. Landsberger, M., and I. Meilijson. 1990. Demand for risky financial assets: A portfolio analysis. Journal of Economic Theory 50: 204–213.CrossRefGoogle Scholar
  7. Meyer, J., and M.B. Ormiston. 1985. Strong increases in risk and their comparative statics. International Economic Review 26: 425–437.CrossRefGoogle Scholar
  8. Ryu, S., and I. Kim. 2003. Comparative statics on the left-side relatively weak first-degree stochastic dominance order and its applications. Seoul Journal of Economics 16: 59–69.Google Scholar
  9. Ryu, S., and I. Kim. 2004a. Left-side strong increases in risk and their comparative statics. Theory and Decision 59: 59–68.CrossRefGoogle Scholar
  10. Ryu, S., and I. Kim. 2004b. Left-side relatively weak increases in risk and their comparative bstatics. Journal of Economics 83: 85–94.CrossRefGoogle Scholar
  11. Ryu, S., and I. Kim. 2012. Increases in risk with multiple crossing and their comparative statics. Journal of Economic Studies 30: 227–238.Google Scholar
  12. Ryu, S., I. Kim, and S. Kim. 2010. Comparative statics under uncertainty with the monotone probability ratio order revisited. The Korean Economic Review 26: 203–222.Google Scholar
  13. Ryu, S., I. Kim, and S. Kim. 2014a. Demand for financial assets for changes in risk under risk aversion. Journal of Finance & Knowledge Studies 15: 253–267.Google Scholar
  14. Ryu, S., I. Kim, and S. Kim. 2014b. Some relationships and properties among the subsets of Rothschild-Stiglitz increases in risk. Journal of Economic Studies 32: 21–36.Google Scholar
  15. Ryu, S., and S. Yoon. 2011. Monotone strong increases in risk and their comparative statics. International Journal of Economic Theory 7: 269–281.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Department of EconomicsChonnam National UniversityGwangjuKorea
  2. 2.The Board of Audit and Inspection of KoreaSeoulKorea
  3. 3.Department of EconomicsAndong National UniversityGyeongsangbuk-doKorea

Personalised recommendations