Question
Sketch and explain a diagram to show how concavity of the Bernoulli utility function corresponds to risk aversion. How might you go about finding out
Sketch and explain a diagram to show how concavity of the Bernoulli utility function corresponds to risk aversion. How might you go about finding out the level of risk aversion for a person or a group of people? What kind of economic policy problems would that be useful for?
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
