In the Baumol-Tobin model, given that total costs for an individual equals where
= monthly income, b = brokerage costs, and C = amoust raised from each bond transaction,
derive the so-called square root rule.

Question

In the Baumol-Tobin model, given that total costs for an individual equals  where
 = monthly income, b = brokerage costs, and C = amoust raised from each bond transaction,
derive the so-called square root rule.

Quizplus · Accepted Answer

The Answer of In the Baumol-Tobin model, given that total costs for an individual equals  where
 = monthly income, b = brokerage costs, and C = amoust raised from each bond transaction,
derive the so-called square root rule.

In the Baumol-Tobin Model, Given That Total Costs for an Individual