Abstract
This note develops conditions for stochastically dominant shifts in a random variable to have a qualitative identifiable effect on a decision variable in two cases: Leland's two-period consumption saving model and Sandmo's model of a firm under uncertainty. In both models, the risk is additive. While the literature focused on mean-preserving spreads, we derive qualitative conclusions in a different group of cases.
Original language | English |
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Pages (from-to) | 141-146 |
Number of pages | 6 |
Journal | European Journal of Political Economy |
Volume | 9 |
Issue number | 1 |
DOIs | |
State | Published - Mar 1993 |