8.8 For the constant relative risk aversion utility function (Equation 8.62) we showed that the degree of
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8.8 For the constant relative risk aversion utility function (Equation 8.62) we showed that the degree of risk aversion is measured by (1 R). In Chapter 3 we showed that the elasticity of substitution for the same function is given by 1/(1 R). Hence, the measures are reciprocals of each other. Using this result, discuss the following questions:
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Related Book For 
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324270860
9th Edition
Authors: Walter Nicholson
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