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lectures/equalizing_difference.md

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@@ -411,6 +411,7 @@ We find that raising the gross interest rate $R$ increases the initial college w
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## Exercises
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```{exercise-start}
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:label: edm_ex1
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```
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of a successful entrepreneur's earnings to a worker's earnings.
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We'll find that as $\pi$ decreases, $\phi$ increases, indicating that the riskier it is to
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be an entrepreuner, the higher must be the reward for a successful project.
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be an entrepreneur, the higher must be the reward for a successful project.
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Now adopt the entrepreneur-worker interpretation of our model.
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