Denotes a village-level shock

Assignment Help Other Subject
Reference no: EM131678597

Individuals in a given village have incomes described by the following equation:

y = A +ε +θ

where A denotes risk-free income, ε denotes an idiosyncratic (individual-level) shock and θ denotes a village-level shock.

(a) Suppose full insurance were possible within this village. How would this affect individual income? (3 pts)

(b) Name two advantages and two disadvantages of limiting insurance to (within) the village.

Reference no: EM131678597

Questions Cloud

Calculate contribution margin ratio : Poloskie Manufacturing Inc. has provided you with the following Cost-Volume-Profit Income Statement. Calculate contribution margin ratio
Analyze the current economic forecasts : Create an argument on whether the yield rate or the forward interest rate has the greater impact on interest rates in the U. S.
Challenges from rapidly developing economics : established companies in developed countries losing market position to challenges from rapidly developing economics.
Discuss etiquette and explain why etiquette is important : Describe a situation where you may have not displayed proper table manners. Explain how you would have resolved this problem having read
Denotes a village-level shock : where A denotes risk-free income, e denotes an idiosyncratic (individual-level) shock and ? denotes a village-level shock.
Counterattack by listing those claims you can refute : As a public response to the crisis your organization or individual faces, prepare a media counterattack by listing those claims you can refute,
Discuss a few changes in the market environment : Discuss a few changes in the market environment that you think help to explain why telephone, mail-order, and Internet retailing have been growing so rapidly.
Discuss aspect of popular culture in a presentation : Trace the development and diffusion of your selected aspect of popular culture in a presentation
Describe your local city or county entity in the us : Describe your local city or county entity In the United States. Is your entity's revenue and expenditures balanced? Why or why not?

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd