7.10 HARA Utility The CARA and CRRA utility functions are both members of a more general class...

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7.10 HARA Utility The CARA and CRRA utility functions are both members of a more general class of utility functions called harmonic absolute risk aversion (HARA) functions. The general form for this function is U(W) ¼ y(m + W/g)

1%g

, where the various parameters obey the following restrictions:

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Microeconomic Theory Basic Principles And Extension

ISBN: 9781111525538

11th Edition

Authors: Walter Nicholson, Christopher M. Snyder

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Question Posted: Nov 12, 2024 05:01 AM

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7.10 HARA Utility The CARA and CRRA utility functions are both members of a more general class...

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Microeconomic Theory Basic Principles And Extension

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