Economics, Econometrics and Finance
4 years ago

New Criterion Identifies Best-Fit Exponential Utility Functions for Improved Financial Analysis.

RePEc: Research Papers in Economics
Estimating Exponential Utility Functions
Steven T. Buccola, Ben C. French

Paper Summary

The article discusses how to estimate exponential utility functions, which are used to understand how people make decisions involving risk and money. These functions are tricky to estimate accurately, but a new criterion has been developed to help choose the best one. This criterion has been successfully applied in analyzing how growers make decisions.

Related papers

Theme background image
Mathematics
8 years ago

New formulas predict power of statistical tests for complex equations.

Skew Distributions
Uncertainty Quantification
System Identification
Theme background image
Mathematics
8 years ago

New research reveals key to accurate survival predictions in exponential model.

Missing Data
Regularization Methods
Discrete Choice
Decision Sciences
8 years ago

New study reveals how distribution functions can optimize decision-making processes.

Multi-Criteria Decision