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The price augmented risk premium, theory and application

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  • Ercolani, Marco

Abstract

This note proposes the Price Augmented Risk Premium (PARP), a decomposition of the multivariage risk premium associated with price and income uncertainty. The PARP is used to measure the likely impact on welfare arising from price fluctuations experienced by UK households over the period 1963-97.

Suggested Citation

  • Ercolani, Marco, 2000. "The price augmented risk premium, theory and application," Economics Discussion Papers 8830, University of Essex, Department of Economics.
    • Handle: RePEc:esx:essedp:8830
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