Set of feasible stationary allocations

Assignment Help Mechanical Engineering
Reference no: EM13888028

Consider a Samuelson model with one commodity in each period and where the endowment of every consumer is (1, 0). Let the utility function of every consumer be u(x0 , x1x0  + 2x1.

(a) Draw a diagram that shows the set of feasible stationary allocations, the endowment, and sample indifference curves.

(b) Indicate on a second copy of the diagram which of the feasible stationary allocations are Pareto optimal.

(c) Compute a stationary spot price equilibrium, (x0 , x1, G, T), for this economy with positive interest rate rand with = 1.

(d) State a social welfare maximization problem that is solved by the allocation of the stationary spot price equilibrium that you just found.

Reference no: EM13888028

Questions Cloud

Pizza hut is the world''s largest pizza chain : It's no surprise that Pizza Hut is the world's largest pizza chain with more than 10,000 restaurants in 100 countries.
Demonstrate critical thinking by accurately interpreting : Demonstrate critical thinking by accurately interpreting the evidence (scholarly sources) provided
How may the fixed and variable costs be expressed : At 10,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $85,000. How may the fixed and variable costs be expressed?
What is the effective exchange rate : The Republic of Argent does 50% of its trade with Eurasia and 50% with Oceania. Over the last three years, the currency has risen from 1 to 1.1 and then to 1.3 against the Oceania dollar. However, against the Eurasian euro it has fallen from 1 to ..
Set of feasible stationary allocations : Consider a Samuelson model with one commodity in each period and where the endowment of every consumer is e = (1, 0). Let the utility function of every consumer be u(x0 , x1) = x0  + 2x1. (a) Draw a diagram that shows the set of feasible stationary a..
Consider the samuelson model : Consider the Samuelson model with one good and no production and in which consumers are endowed with one unit of good in youth and none in old age and where their utility functions are u(x0 , x1) = log x0 + (0.5) log x1.
How should imf interventions differ in the cases : National governments do not try to restrict the ?ow of ?nances between regions and sectors within a country. Why should they therefore use capital controls to restrict ?ows of ?nance between nations?
Lowest cost per thousand : 1.Which medium has the lowest cost per thousand?

Reviews

Write a Review

Mechanical Engineering Questions & Answers

  Package design

Package Design Brief: Assume you are the packaging engineer for a large consumer products company. In this company, the Packaging Design Briefs are initiated by the marketing group and forwarded to the Package Engineering group.

  Mechanical engineering questions

Define dynamic viscosity, Determine the centroid, Pressure due to the height of liquid, Advantage of changing the liquid, Calculate the total moment about the hinge of the seal gate.

  Automatic control

DOF system and Find the differential equation describing the system

  Write a paper on boyle''s law

Write a paper on Boyle's law and describe Compression and Combustion stroke . Also explain Charles's law and illustrate SI engine and CI engine.

  Verify the law for parallelogram of forces

To Verify the law for parallelogram of forces, law for triangle of forces and law of polygon of forces. These laws are very useful to calculate unknown forces in very short time.

  Discharge pressure of the compressor

What is the discharge revised discharge pressure of the compressor.

  The Case for Global Accounting Standards

The role of IFRS in both developing and developed capital markets.

  Wind turbine

Wind turbines are becoming more and more common as a method of energy production, wind turbines by their very nature are dynamic and are subject to and create their own internal and external kinematics and kinetics.

  Advanced design methodologies

8 x product engineering and design review (week 2 – 12), ~3 pages per item which must contain a brief description of the product then delve into concepts such as materials selection, manufacturing methods, life cycle analysis, recyclability and overa..

  Design of absorption column and the cooler

Design of absorption column and the cooler. Process design of other units should be completed along with pipe sizes.

  Determine the maximum total bending moment

Determine maximum total bending moment (static plus dynamic) of the beam under steady-state conditions.

  Force of the water on the gate

Determine the magnitude of the horizontal and vertical components of the force of the water on the gate.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd