Question
Annas preferences are described by a time-separable log-utility function with a constant discount factor and the risk free interest rate is 10%. Her consumption remains
Annas preferences are described by a time-separable log-utility function with a constant discount factor and the risk free interest rate is 10%. Her consumption remains constant over time. What does this observation imply for her time preference?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
