000002017 001__ 2017
000002017 005__ 20171120194409.0
000002017 022__ $$a0022-4367
000002017 0247_ $$2DOI$$a10.1111/jori.12105
000002017 037__ $$aARTICLE-2017-065
000002017 041__ $$aeng
000002017 100__ $$aCourbage, Christophe$$uHaute école de gestion de Genève, HES-SO // Haute Ecole Spécialisée de Suisse Occidentale
000002017 245__ $$aOptimal prevention for multiple risks
000002017 260__ $$c2017
000002017 269__ $$c2017-09
000002017 300__ $$a899-922
000002017 506__ $$apublic
000002017 506__ $$d2018-09-03
000002017 520__ $$9eng$$aThis paper analyzes optimal prevention in a situation of multiple, possibly correlated risks. We focus on probability reduction (self-protection) so that correlation becomes endogenous. If prevention concerns only one risk, introducing a second exogenous risk increases the level of prevention expenditures, even if correlation is negative. If prevention expenditures may be invested for both risks, a substitution effect arises. Under non-increasing returns on self-protection, we find that increased dependence increases aggregate prevention expenditures, but not necessarily prevention expenditures for each risk due to differences in prevention efficiency. Similar results are found when considering changes in the severity of losses. Consequently, the comparative statics emphasize global effects versus allocation effects. Our results have strong policy implications, considering the numerous mandatory safety measures introduced by governments over the past years.
000002017 592__ $$aHEG-GE
000002017 592__ $$bCentre de Recherche Appliquée en Gestion
000002017 65017 $$aÉconomie/gestion
000002017 6531_ $$9eng$$aprevention
000002017 6531_ $$9eng$$acorrelation
000002017 6531_ $$9eng$$amultiple risks
000002017 655__ $$ascientifique
000002017 700__ $$aLoubergé, Henri$$uUniversity of Geneva and Swiss Finance Institute
000002017 700__ $$aPeter, Richard$$uDepartment of Finance, Henry B. Tippie College of Business, University of Iowa
000002017 773__ $$g2017, Vol. 84, no 3, pp. 899-922$$tJournal of risk and insurance
000002017 8564_ $$s336517$$uhttp://hesso.tind.io/record/2017/files/Courbage_2017_optimal_prevention.pdf
000002017 909CO $$ooai:hesso.tind.io:2017$$qDoc_type_Conferences$$qDoc_type_Theses$$qDoc_type_Articles$$qHEG-GE:scientifique$$qHEGGE_professionnels$$qDoc_type_Rapport$$qDoc_type_Livres$$qEcole_hôtelière_de_Lausanne:Economie/gestion$$qDoc_type_Media$$qHEG-GE:professionnel$$qDoc_type_Chapitre_livre$$qDoc_type_Preprint$$qHEG-GE:public_conference$$qGLOBAL_SET
000002017 950__ $$aI2
000002017 980__ $$ascientifique