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A Widely Used Utility Function in the Economics Literature Is γ\gamma

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A widely used utility function in the economics literature is the constant rate of risk aversion utility function, of which log utility is a special case. It is given by A widely used utility function in the economics literature is the constant rate of risk aversion utility function, of which log utility is a special case. It is given by . With this utility function, the marginal utility of consumption is c <sup>- \gamma </sup> . What is the Euler equation for this utility function? Show that if , the Euler equation is the same as if we used log utility.
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With this utility function, the marginal utility of consumption is c - γ\gamma . What is the Euler equation for this utility function? Show that if A widely used utility function in the economics literature is the constant rate of risk aversion utility function, of which log utility is a special case. It is given by . With this utility function, the marginal utility of consumption is c <sup>- \gamma </sup> . What is the Euler equation for this utility function? Show that if , the Euler equation is the same as if we used log utility.
, the Euler equation is the same as if we used log utility.

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