Question
T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model. If everyone becomes more risk averse, this can cause the equilibrium to
T or F: Suppose there is a separating equilibrium in the Rothschild-Stiglitz model. If everyone becomes more risk averse, this can cause the equilibrium to collapse. Can I please get a more indepth answer so I can understand :D
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Macroeconomics
Authors: Stephen D. Williamson
6th Edition
013447211X, 134472119, 978-0134472119
