Economic Theory

, Volume 50, Issue 1, pp 151–167

On relative and partial risk attitudes: theory and implications

Research Article

DOI: 10.1007/s00199-010-0557-7

Cite this article as:
Chiu, W.H., Eeckhoudt, L. & Rey, B. Econ Theory (2012) 50: 151. doi:10.1007/s00199-010-0557-7


This paper develops context-free interpretations for the relative and partial Nth degree risk attitude measures and show that various conditions on theses measures are utility characterizations of the effects of scaling general stochastic changes in different settings. It is then shown that these characterizations can be applied to generalize comparative statics results in a number of important problems, including precautionary savings, optimal portfolio choice, and competitive firms under price uncertainty.


Nth degree riskStochastic dominanceRelative risk aversionComparative staticsRisk apportionment

JEL Classification


Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  • W. Henry Chiu
    • 1
  • Louis Eeckhoudt
    • 2
    • 3
  • Beatrice Rey
    • 4
  1. 1.Department of Economics, School of Social SciencesUniversity of ManchesterManchesterUK
  2. 2.IESEG School of Management, LEMLilleFrance
  3. 3.CORELouvain-la-NeuveBelgium
  4. 4.Université de Lyon, Université Lyon 1, LSAFLyonFrance