The Economic Theory of Risk and Insurance

The following study deals almost exclusively with the idealized conditions of the static state. It only incidentally attempts to show the bearing of the static laws on the phenomena of the real world or the practice of existing insurance companies. It must consequently wear something of the air of unreality which attaches to all discussions that deal largely with abstractions. Its only purpose is to shed a little light on a rather neglected portion of pure economic theory. Originally published in 1901.