This paper concentrates on the primary theme of FOR THE UTILITY FUNCTION U = LOG(Y): A. SHOW THAT THE COINCIDENT OF RELATIVE RISK AVERSION IS. in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
For the utility function U = log(Y):
a. Show that the coincident of relative risk aversion
is constant (where U’ and U” denote the first and second derivative of U with respect to Y, respectively). b. Show that the proportion of income not declared, X/Y , is independent of Y for a consumer with this utility function.