Risk Preferences Necessary to Choose Life Insurance Funding of Buy-Sell Arrangements

Pratt-Arrow risk aversion coefficients are derived such that term life insurance funding of buy-sell arrangements is preferred by decision makers with risk preferences greater than those breakeven coefficients. Given previous estimates of farmers' risk preferences, anything greater than a 25 percent loading of actuarially fair premiums would discourage life insurance funding.


Issue Date:
1985-07
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/185998
Total Pages:
17




 Record created 2017-04-01, last modified 2017-08-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)