x
Info
x
Warning
x
Danger
 / 
 / 
 / 
SHORT ANSWER 1.A widely used utility function in the economics literature

Question : SHORT ANSWER 1.A widely used utility function in the economics literature : 2081469

SHORT ANSWER

1.A widely used utility function in the economics literature is the constant rate of risk aversion utility function, of which log utility is a special case. It is given by.

With this utility function, the marginal utility of consumption is . What is the Euler equation for this utility function? Show that if , the Euler equation is the same as if we used log utility.

 

 

Solution
5 (1 Ratings )

Solved
Economics 3 Days Ago 34 Views
This Question has Been Answered!

Related Answers
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
119307 Economics Questions Answered!
Post a Question