But of course as we approach our cap T, we should be taking on more and more risks, because the expected losses get smaller and smaller.
Sure, the u(c(t),t) function can change with t, but then it also becomes sort of useless.
Richard Green is a professor in the Sol Price School of Public Policy and the Marshall School of Business at the University of Southern California. This blog will feature commentary on the current state of housing, commercial real estate, mortgage finance, and urban development around the world. It may also at times have ruminations about graduate business education.