Consider two period endowment economy with government

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Consider a two period endowment economy with government. Suppose the government can impose lumpsum taxes and issue public debt. i) De?ne a sequential competitive equilibrium for this economy. ii) De?ne a Arrow Debreu competitive equilibrium for this economy. iii) Find conditions such that the allocations are the same in the Sequential and Arrow Debreu equilibrium. Hint: Find some condition on q0.

Reference no: EM131173238

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