The Flexible Three Parameter Utility Function |
Denis Conniffe |
This brief paper introduces a flexible three parameter utility function, the FTP, which has a reasonably simple mathematical expression. It can be seen as a generalization of the PRA utility function of Xie (2000), but it is more flexible. It encompasses other systems of utility functions including the HARA family and it can incorporate properties such as subsistence and saturation. |
Key Words: Risk aversion properties; FTP utility functions. |
JEL Classification Numbers: B41, C60. |