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File: Money Pdf 44678 | E855lec8n
Lecture Notes - Insurance 1Introduction need for insurance arises from — uncertain income (e.g. agricultural output) — risk aversion - people dislike variations in consumption - would give up ...

icon picture PDF Filetype PDF | Posted on 17 Aug 2022 | 2 years ago

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...Lecture notes insurance introduction need for arises from uncertain income e g agricultural output risk aversion people dislike variations in consumption would give up some or money to get smoother over dierent states of the world i realizations bad crop vs good and time types uncertainty idiosyncratic aects only given individual sick ag gregate a whole group individuals weather can deal with these forms self using one s own wealth smooth shocks this works by accumulating running down stocks cash often also livestock bullocks india small farmers very organized market present jewelry even land credit already discussed mutual suppose agents pool share equally then idiosyn cratic those that aect each separate person be completely insured away aggregate total amount are reected relies on fact make transfers every period history doesn t matter clearly sustain it is needed all due chance not laziness example correlation between matters if andgoodshocksatthesametime nouseofpoolingasinsurance ...
								

							

						
	
												
				
					
					
					
			
					
				
				
		
	

	
		





	

	
				

						

						
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										Category:  Uncategorized / Uncategorized 
										
Posted on: 17 Aug 2022 | 2 years ago
										
										
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Filetype: PDF
										
File size: 0.13 MB
										
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