Acharya, Viral V. (contributor) - 2002 - [Elektronische Ressource]
investment, and increases at a growing
rate. To capture this, I model the cost function as f(¯x)c(x), where ¯x is the aggregate …
risky investment, x is the bank’s individual risky investment, and f(¯x) and c(x) satisfy
the neoclassical assumptions: c(0 …) = 0, cprime(0) = 0, cprime(x) > 0, cprimeprime(x) > 0, ∀x > 0, c(x)
continuous, and exactly identical behavior of f(¯x) as …