A Definition of ‘More Systematic Risk’ with Some Welfare Implications
Bibliographic Data
| ID | 9728104 |
|---|---|
| Authors | David A Hennessy (0000-0001-7293-9963, Iowa State University), Harvey E Lapan (Iowa State University) |
| Year | 2003 |
| Volume | 70 |
| Issue | 279 |
| Pages | 493-507 |
| Publication date | 2003-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.t01-1-00295 |
| OpenAlex | W2006367068 |
| Language | EN |
| Citations received | 1 |
| References cited | 17 |
Producers are subject to similar production risks, and so their outputs are likely correlated. Using the entire data‐set rather than summary statistics, we study an ordinal definition of systematic risk. For risk‐neutral producers in perfect competition, we trace the effects of an increase in systematic risk through to impacts on welfare measures and production decisions. Expected welfare falls under more systematic risk, but either of expected producer surplus or expected consumer surplus may rise. Our definition of systematic risk also has relevance for the incentive to incur R&D expenditures, the benefits of diversity and the gains from risk‐sharing
Actuarial science · Business · Competition (biology) · Econometrics · Economic surplus · Economics · Incentive · Microeconomics · Production (economics) · Public economics · Relevance (law) · Systematic risk · TRACE (psycholinguistics) · Welfare · Firm Innovation and Growth · Global trade and economics · Merger and Competition Analysis
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,05 |
| Citation span | 2006 - 2006 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |