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as HTMLa span class=fFile Format:span PDFAdobe Acrobat - a as HTMLa Key words: Certainty effect - risk aversion - Arrow-Pratt measure Non-expected utility theory. JEL D80. Accepted Paper Series. A Note on Partial Insurance and the Arrow-Pratt Measure of Risk Aversion, by W. Henry CHIU. Mortality

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Arrow-Pratt index of absolute risk aversion as a measure of global risk aversion of a utility function. In each state there is an Arrow-Pratt coefficient of absolute risk aversion. Pratt's (1964) measure of risk

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aversion for utility. span class=fFile Format:span PDFAdobe Acrobat - a as HTMLa The Arrow-Pratt measure of absolute risk aversion is defined by: This is a measure

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Aversion (CRRA). AIRAP is formulated as follows :. when c (Arrow-Pratt coefficient) is different to. span class=fFile Format:span PDFAdobe Acrobat - a as HTMLa This measure is the Arrow-Pratt measure of absolute risk-aversion (ARA, after the economists Kenneth Arrow and John W. Pratt) or coefficient of absolute. It was not until the work of Arrow (1965, 1971) and Pratt (1964), who

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