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please provide the answers 5. [ID] Consider a. two-consumer exchange economyr with uncertainty. Consumers can buy and sell claims on oonsumption st.- in state i

please provide the answers

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5. [ID] Consider a. two-consumer exchange economyr with uncertainty. Consumers can buy and sell claims on oonsumption st.- in state i = 1.2 at unit priee m. which is realised with probability :15. There are 2 units of the consumption good in state 1, which are entirely owned by oonsumer A. and 2 units of the oonsumption good in period 2. which are entirely owned by consumer 5. Consumer A is risk-Meme: her utility over money consequences 3" is 1:311:11) = ins-A. Consumer B is risk-neutral: her utility over money consequences 1'3 is nBIIB] 2 1'3. (11} [2] Illustrate this economy in an Edgewnrth box. {b} [2] Is there idiosyncratic risk in this economy? {c} [2] Is there aggregate risk in this economy? {d} [2] Derive a competitive equilibrium for this economy. (2} [2] Describe the consumers' equilibrium immense plans in this economy. Is insurance aetnarially air? Are the consumers ever fully insured? Interpret your

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