| Article ID: | iaor2003937 |
| Country: | Germany |
| Volume: | 24 |
| Issue: | 2 |
| Start Page Number: | 145 |
| End Page Number: | 150 |
| Publication Date: | Jan 2002 |
| Journal: | OR Spektrum |
| Authors: | Broll U., Battermann H.L., Wahl J.E. |
| Keywords: | insurance |
The aim of this study is to analyze optimum insurance demand of a risk averse agent. By introducing the concept of elasticity of risk aversion, we describe the interaction of optimum coverage and insurance risk. The agent's revision of her insurance demand is governed by a substitution effect and an income effect.