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This first function is the ‘original’ CRRA function. $$u(c_t) = \frac{c_t^{1-\theta}-1}{1 - \theta}$$ The second function is monotonic transformation of the first function. Monotonic transformation of any utility function will still represent the same preferences (monotonic transformation preserves the ordering of preferences). $$u(c_t) = \frac{c_t^{1-\theta}...

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