Including Firm Adaptation to Risk - Including Firm Adaptation to Risk - Add Risk Aversion(spraver.gms) Back to Unified model Max s.t. -2Y + X 1,I 0 + X 1,I + X 1,NI 2 -3Y +4( 1.2 * X +1.1 * X - I 1 = 0 1,I 1,NI) -2.2Y + X 2,I 0 + X 2,I + X 2,NI 2.2 -3Y +6( 1.9 * X +0.9 * X - I 2 = 0 2,I 2,NI) - 0.3 I -0.7I 2 +E = 0 1
Including Firm Adaptation to Risk - Including Firm Adaptation to Risk - Add Risk Aversion(spraver.gms) Back to Unified model Max s.t. -2Y + X 1,I 0 + X 1,I + X 1,NI 2 -3Y +4( 1.2 * X 1,I +1.1 * X 1,NI) - I 1 = 0 -2.2Y + X 2,I 0 + X 2,I + X 2,NI 2.2 -3Y +6( 1.9 * X 2,I +0.9 * X 2,NI) - I 2 = 0 - 0.3 I 1 -0.7I 2 +E = 0
chapter14adaptiverisk.docx