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10. The next four questions are based on the following labor-taxes model: Rodolfo has a lifetime utility given by: o (1 - 1) + I

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10. The next four questions are based on the following labor-taxes model: Rodolfo has a lifetime utility given by: o (1 - 1) + I 1-0 7 where co, C is consumption of both periods of life, and lois labor in the first period (so 1-lo is leisure). The wage in the first period is wo. He does not work in the second period. Risk aversion is a > 0 and the utility of labor is such that 0 and the utility of labor is such that

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