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The Slutsky equation can be constructed as a parallelogram (a diamond), the area of which is proportional to the elasticity of substitution. This construction permits to show immediately that demand functions become concave on an interval if the elasticity of substitution increases sufficiently....
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Intro -- INTRODUCTION -- 1 A FIRST VISIT TO INTEREST RATES AND BONDS -- 2 AN ARBITRAGE-ENFORCED VALUATION OF BONDS -- 3 THE VARIOUS CONCEPTS OF RATES OF RETURN ON BONDS: YIELD TO MATURITY AND HORIZON RATE OF RETURN -- 4 DURATION: DEFINITION, MAIN PROPERTIES, AND USES -- 5 DURATION AT WORK: THE...
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