Consider the case of n people, each with incomes I, i = 1,2, ... n and...
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Consider the case of n people, each with incomes I, i = 1,2, ... n and suppose that they enter a risk sharing contract so that individual i's income is 1 a 1 + y with a = 1 for all j. Suppose the risk tolerance of all individuals are identically equal. Suppose the variances of I, are identical (Oii = Ojj = V > 0, i j) and the covariances are also identical (ij = Ost = cv > 0, i j;s t). We assume that ij Consider the case of n people, each with incomes I, i = 1,2, ... n and suppose that they enter a risk sharing contract so that individual i's income is 1 a 1 + y with a = 1 for all j. Suppose the risk tolerance of all individuals are identically equal. Suppose the variances of I, are identical (Oii = Ojj = V > 0, i j) and the covariances are also identical (ij = Ost = cv > 0, i j;s t). We assume that ij
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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