Economic development

ARE115APS3F19ExcelTemplate.xlsx

Q1 and Q2

Expected Values as functions of interest rates 'i'
i (Interest Rate)	E(Ys)	E(Yr)	E(piS)	E(piR)	E(Pi\|Asy Info)
0						Figure 1	Figure 2
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3
Ys	Income to the safe farmer
Yr	Income to the risky farmer
piS	Profit with safe farmer
piR	Profit with risky farmer
Pi\|Asy Info	Profit under asymmetric info