Public Choices and Private Risks: The Role of Economic Analysis

Smith, V.K. (1989) Public Choices and Private Risks: The Role of Economic Analysis. Discussion Paper. Resources for the Future, Inc., Quality of the Environment Division , Washington, D.C., USA .

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This paper reviews the conceptual limitations of an expected utility framework for evaluating how people respond to environmental risk. It describes the model's implicit and explicit assumptions and their relationship to these problems and summarizes the empirical evidence considering whether people make rational decisions in dealing with these types of risk. Results from indirect methods, survey techniques, including both contigent valuation and contingent behavior, and real-world experiments are described. The paper concludes with a discussion of the conceptual issues that will need to be incorporated in more realistic models describing how people respond to these types of risks

Item Type: Monograph (Discussion Paper)
Uncontrolled Keywords: Risk; Rational behavior; Economic analysis, RP6962
Author Affiliation: University Distingulshed Professor of Department of Economics and Business North Carolina State University and University Fellow Resources for the Future
Subjects: Social Sciences
Divisions: General
Depositing User: Mr T L Gautham
Date Deposited: 20 May 2014 10:42
Last Modified: 20 May 2014 10:42

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