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insurance

PostPosted: Thu Sep 22, 2011 7:38 am
by gazzani.andrea
Is it possible to introduce in Dyanre the incentive of agents to insure againts shocks?
Thank you
Andrea

Re: insurance

PostPosted: Wed Sep 28, 2011 1:23 pm
by SébastienVillemot
If you are talking about the precautionnary motive related to the third derivative of the utility function, then it is possible to put it in evidence in Dynare if you use a third order approximation.

Best,

Re: insurance

PostPosted: Wed Sep 28, 2011 3:31 pm
by gazzani.andrea
Thank you very much