Recent content by Alec V

So, we expressed ( \frac{A}{W + F} - \frac{B}{W + G}) as ( \frac{A}{W} - \frac{B}{W}) \ + \ L . You then proceed to further simplify the leftover stuff. However, how can we get from ( \frac{A}{W + F} - \frac{B}{W + G}) to ( \frac{A}{W} - \frac{B}{W}) \ + \ L ? Thanks.

Thanks so much! The simplification of L makes sense. Could you please dwell on how to separate ( \frac{A}{W} - \frac{B}{W}) from ( \frac{A}{W + F} - \frac{B}{W + G}) ?

Sorry, I should have clarified. ∏s1 is profit in country 1, ∏s2 is profit in country 2, ∈s1 is risk in country 1, ∈s2 is risk in country 2, and δ is the discount rate. Eq. 2 tries to separate risk elements (∈s1 and ∈s2) from the profit gap between countries. Hope this helps.

This comes from one of the research papers that I'm reading. The authors decompose Eq. 1 and obtain Eq. 2. After several attempts, I have been fairly unsuccessful at obtaining Eq. 2 from Eq. 1. I have tried using partial fractions decomposition without much success. Any help would be greatly...