RDP 9311: Agency Costs, Balance Sheets and the Business Cycle Equation (3)

If   the   risky   project   is   undertaken: U ( ⋅ ) = p w s 1 − γ + ( 1 − p ) w f 1 − γ MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@6FEF@