The elasticity of intertemporal substitution is defined in a non stochastic model with interest rate R as C2 C1d(C C) dR R Show that with power utility u(c) c, the intertemporal substitution elas ticity is equal to 1 7 (Hint differentiate the first order conditions) The elasticity of intertemporal...

The elasticity of intertemporal substitution EIS measu ...

The elasticity of intertemporal substitution is defined in a non- stochastic model with interest rate R...

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Microeconomics An Intuitive Approach with Calculus

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