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Proving that constant absolute risk aversion and relative risk aversion implies independence of initial wealth
I was able to prove that for a portfolio with one risk-free asset and one risky asset, if the Arrow-Pratt measure of absolute risk aversion is constant (i.e., constant absolute risk aversion, CARA), ...
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Why do housing and parking cost more in urban than in rural areas, but road access doesn't?
In city centres, land is more expensive than in suburban or rural areas, as land is scarce. Consequentially, housing and parking in cities cost more. However, the same is not true for using the road ...
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