Let (u: mathbb{R} ightarrow mathbb{R}) be a twice differentiable utility function and denote by (r_{u}^{a}(x)) the
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Let \(u: \mathbb{R} \rightarrow \mathbb{R}\) be a twice differentiable utility function and denote by \(r_{u}^{a}(x)\) the coefficient of absolute risk aversion. Show that, for suitable \[u^{\prime}(x)=k \mathrm{e}^{-\int_{c}^{x} r_{u}^{a}(y) \mathrm{d} y}, \quad \text { for every } x \in \mathbb{R} .\]
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Financial Markets Theory Equilibrium Efficiency And Information
ISBN: 9781447174042
2nd Edition
Authors: Emilio Barucci, Claudio Fontana
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