Das, Jishnu; Dercon, Stefan; Habyarimana, James; … - Centre for the Study of African Economies (CSAE), … - 2004
. Inresponsetotheomittedvariableproblemthat
such heterogeneity creates, studies have tried to exploit “natural-experiments” (Angrist and Lavy
1999; CaseandDeaton …-temporal utility function U(.), additive over time and states of the world with
discount rate (< 1) subject to an inter …
numeraire, the price of other consumption goods is P
t
and r is the interest rate. The production
function constraint, Equation …