<p>The paper <a href="https://www.sciencedirect.com/science/article/abs/pii/002205317190038X" rel="noreferrer">Optimum consumption and portfolio rules in a continuous-time model (Merton (1971))</a> presents (as far as I know, the initial presentation.</p>
<p>[<img src="https://i.sstatic.net/XeyqE.png" alt="Description of HAARA utility in Merton 19713" /></p>
<p>Next we turn to a paper that discusses the importance of the HARA utility.
<a href="https://www.tau.ac.il/%7Eyashiv/Sep2013.pdf" rel="noreferrer">The Fundamental Nature of HARA Utility (Perets and Yashiv (2013))</a></p>
<blockquote>
<p>Many models in Economics assume a utility function belonging to the
HARA family. This paper shows that HARA utility is fundamental to
economic analysis. The HARA functional form is the unique form which
satisfies basic economic principles in an optimization context. Using
HARA is not just a matter of convenience or tractability but rather an
essential restriction....</p>
</blockquote>
<p>This notable paper has a multi page exploration of the HARA utility family.
<a href="https://link.springer.com/content/pdf/10.1007/BF01917173.pdf" rel="noreferrer">Implications of Constant Risk Aversion (Bamberg and Spremann (1981))</a></p>
<blockquote>
<p>The assumption of constant risk aversion often leads to a considerable
simplification of decision theoretic analyses. It is shown that this
restriction on constant risk aversion permits the description of a
wide range of risk averse patterns between the extreme cases of risk
neutrality and the exclusive orientation on the pessimistic maxmin
criterion. In particular, a new axiomatic foundation of the constant
risk aversion is given and a series of properties for the certainty
equivalent are derived. Possible applications are shown by the
treatment of risk premiums, values of information, portfolio
selection, capital market theory and syndicates.</p>
</blockquote>
<p>There is a book that I can't vouch for but may be useful:
<a href="https://www.amazon.co.uk/Hyperbolic-absolute-risk-aversion-Second/dp/1719230854" rel="noreferrer">Hyperbolic absolute risk aversion: Second Edition</a></p>

CC BY-SA 4.0
2020-10-16T18:13:13.827Z
2020-10-16T18:13:13.827Z
BKay
<p>I am searching for some exntensive details about HARA preferences.  Where could I find some extensive details for HARA preferences? Something like a textbook or notes</p>

CC BY-SA 4.0
2020-10-15T14:41:19.127Z
Please narrow your question down to a scope that is suitable for the SE platform.
Herr K.
CC BY-SA 4.0
2020-10-15T17:33:58.427Z
A [Google search](https://www.google.com/search?q=HARA+preferences&oq=HARA+preferences) turns up many relevant results. Of course you can go straight to [Merton (1971)](https://www.sciencedirect.com/science/article/abs/pii/002205317190038X) where properties and implications of HARA utility functions are first explored.
Herr K.
<microeconomics><mathematical-economics><utility><finance><preferences>
HARA preferences details
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# HARA preferences details

(Asked by: username_0 on 2020-10-15)

I am searching for some exntensive details about HARA preferences. Where could I find some extensive details for HARA preferences? Something like a textbook or notes

**Tags:** microeconomics, mathematical-economics, utility, finance, preferences
> **Comments:**
> **username_1**: Please narrow your question down to a scope that is suitable for the SE platform.  
> **username_1**: A [Google search](https://www.google.com/search?q=HARA+preferences&oq=HARA+preferences) turns up many relevant results. Of course you can go straight to [Merton (1971)](https://www.sciencedirect.com/science/article/abs/pii/002205317190038X) where properties and implications of HARA utility functions are first explored.  

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## 1 answers

### Answer by username_2 on 2020-10-16. Score: 5 | Accepted answer

The paper [Optimum consumption and portfolio rules in a continuous-time model (Merton (1971))](https://www.sciencedirect.com/science/article/abs/pii/002205317190038X) presents (as far as I know, the initial presentation.

[![Description of HAARA utility in Merton 19713](https://i.sstatic.net/XeyqE.png)

Next we turn to a paper that discusses the importance of the HARA utility.
[The Fundamental Nature of HARA Utility (Perets and Yashiv (2013))](https://www.tau.ac.il/%7Eyashiv/Sep2013.pdf)

> Many models in Economics assume a utility function belonging to the
> HARA family. This paper shows that HARA utility is fundamental to
> economic analysis. The HARA functional form is the unique form which
> satisfies basic economic principles in an optimization context. Using
> HARA is not just a matter of convenience or tractability but rather an
> essential restriction....

This notable paper has a multi page exploration of the HARA utility family.
[Implications of Constant Risk Aversion (Bamberg and Spremann (1981))](https://link.springer.com/content/pdf/10.1007/BF01917173.pdf)

> The assumption of constant risk aversion often leads to a considerable
> simplification of decision theoretic analyses. It is shown that this
> restriction on constant risk aversion permits the description of a
> wide range of risk averse patterns between the extreme cases of risk
> neutrality and the exclusive orientation on the pessimistic maxmin
> criterion. In particular, a new axiomatic foundation of the constant
> risk aversion is given and a series of properties for the certainty
> equivalent are derived. Possible applications are shown by the
> treatment of risk premiums, values of information, portfolio
> selection, capital market theory and syndicates.

There is a book that I can't vouch for but may be useful:
[Hyperbolic absolute risk aversion: Second Edition](https://www.amazon.co.uk/Hyperbolic-absolute-risk-aversion-Second/dp/1719230854)


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