Explaining the Characteristics of the Power (CRAA) Utility Family.

P.P. Wakker

doi:10.1002/hec.1331

Explaining the Characteristics of the Power (CRAA) Utility Family.

P.P. Wakker^*

^*Corresponding author for this work

Quantitative Economics

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

The power family, also known as the family of constant relative risk aversion (crra), is the most widely used parametric family for fitting utility functions to data. Its characteristics have, however, been little understood, and have led to numerous misunderstandings. This paper explains these characteristics in a manner accessible to a wide audience.

Original language	English
Pages (from-to)	1329-1344
Number of pages	1329
Journal	Health Economics
Volume	17
Issue number	16
DOIs	https://doi.org/10.1002/hec.1331
Publication status	Published - 1 Jan 2008

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10.1002/hec.1331

Cite this

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