MR, Macroeconomics

Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and
endowments are given as follows.
u1(x0; x1) = (x0x1)2 and e1 = (18; 4)
u2(x0; x1) = ln x0 + 2 ln x1 and e2 = (3; 6)
1. Characterize the set of ecient allocations as completely as possible.
2. Describe an Arrow-Debreu environment for this economy, explaining when markets are
open, who trades what with whom, and so on. De ne an Arrow-Debreu competitive
equilibrium (AD equilibrium, for short).
3. Find the unique AD equilibrium of this economy.
Posted Date: 9/30/2012 2:33:16 PM | Location : United States







Related Discussions:- MR, Assignment Help, Ask Question on MR, Get Answer, Expert's Help, MR Discussions

Write discussion on MR
Your posts are moderated
Related Questions
What is Bolivia''s growth in 1985?

what would be effect of fiscal and monetry policy on price and output level if meges are flexible and rigied?

To analyze the effects of discrimination in labor markets, use supply and demand curves for labor, with the demand curves representing the value of the marginal product, show the e

The Neoclassical thinking that assumes that all firms are established with the intention of making profit has been challenged by the managerial discretion models. How successful ha

What is the formula for consumer price index?

What is the marginal product? The marginal product of an input is the extra quantity of output which is generated by using one more unit of which input. Marginal product of

The U.S. Department of Agriculture, nass.usda.gov, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices

I need some help organizing an outline for a 5000-6000 word paper. What I am asking for is ideas on how to best organize this topic: "Should Government do it all? Can outsourcing t

Differentiate between Actual and Potential output.  Actual output is that level which economy in fact produces. In contrast, potential output is the aggregate capacity output o

I would like to know one of the external determinants in Spain''s recovery, please?