economics, the isoelastic function for utility, also known as the isoelastic utility function, or power utility function, is used to express utility in terms...
7 KB (890 words) - 03:37, 17 March 2024
alternative utility functions such as: CES (constant elasticity of substitution). Isoelastic utility Exponential utility Quasilinear utility Homothetic...
34 KB (4,603 words) - 20:55, 30 August 2024
Constant elasticity of substitution (redirect from CES utility)
competition. Note the difference between CES utility and isoelastic utility: the CES utility function is an ordinal utility function that represents preferences...
11 KB (1,578 words) - 19:27, 22 March 2024
Hyperbolic absolute risk aversion (redirect from HARA utility function)
utility function, the exponential utility function, and the isoelastic utility function. A utility function is said to exhibit hyperbolic absolute risk aversion...
9 KB (1,213 words) - 16:53, 17 February 2022
This feature explains why the exponential utility function is considered unrealistic. Though isoelastic utility, exhibiting constant relative risk aversion...
7 KB (1,195 words) - 17:09, 26 January 2023
Epstein–Zin preferences (category Utility)
Neumann–Morgenstern expected utility index. Importantly, unlike von Neumann–Morgenstern utility functions (e.g. isoelastic utility), Epstein–Zin preferences...
3 KB (455 words) - 14:05, 2 February 2024
Risk aversion (redirect from CARA utility)
disentangled from the coefficient of relative risk aversion. The isoelastic utility function u ( c ) = c 1 − ρ − 1 1 − ρ {\displaystyle u(c)={\frac {c^{1-\rho...
39 KB (5,220 words) - 11:45, 22 July 2024
In mathematical economics, an isoelastic function, sometimes constant elasticity function, is a function that exhibits a constant elasticity, i.e. has...
4 KB (568 words) - 18:04, 25 January 2024
Homothetic preferences (category Utility function types)
constant-relative-risk-aversion form for within period utility (also called the power utility or isoelastic utility). The reason is that, in combination with additivity...
5 KB (769 words) - 16:43, 12 August 2023
^{t}u(c_{t}^{vol})} and solving for λ {\displaystyle \lambda } For the case of isoelastic utility, given by u ( c t ) = c t 1 − θ − 1 1 − θ {\displaystyle u(c_{t})={\frac...
14 KB (2,053 words) - 23:02, 7 December 2023