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Problem Set 1
Econ 702
January 30, 2004
Problem 1
Show that without the assumption of continuity of the price func
t
ion
,theproo
fo
fF
irs
tBas
icWe
l
fareTheoremdoesn
’
tgothrough
.
Problem 2
Prove the following:
x
∗
∈
PO
(
ε
)
⇔
x
∗
∈
arg max
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Unformatted text preview: max { c t ,l t ,k t +1 } ∞ X t =0 β t u ( c t ) ( 2 ) s.t. c t + k t +1 = f ( k t, l t ) k given. c t ≥ k t +1 ≥ C t ∈ [0 , 1] Show that this problem has a unique solution. 1...
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This note was uploaded on 11/12/2010 for the course ECON 8108 taught by Professor Staff during the Spring '08 term at Minnesota.
 Spring '08
 Staff

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