/* does kandel stambaugh type calculations */

library pgraph;
format /RD 10,2;


c = 50000;
gam = 2~10~50~100~250;
y = 10|100|1000|10000;
xc = 1 - (0.5.*(1+y./c)^(1-gam) + 0.5.*(1-y./c)^(1-gam))^(1/(1-gam));
format /RD 10,2;
(0~gam)|(y~(xc.*c));
"approximate";
(0~gam)|(y~(0.5.*gam.*c.*(y./c)^2));

/* insurance example */
/*
c = 50000;
delt = 0.95;
gam = 10;
p = 0.01;
y = 12000/c;  /* cy = rent */
delt.*(p.*(1-y)^(1-gam) + (1-p)); "should be less than one";
xa = c.*delt.*p.*y./(1-delt.*(1-p.*y));
x = c.*( 1 - ( (1-delt) ./ (1 - delt.*(p.*(1-y)^(1-gam)+1-p)))^(1/(1-gam)) );
"xa" xa;
"x"  x;
*/