pr1ec70204 - max { c t ,l t ,k t +1 } ∞ X t =0 β t u ( c...

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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.

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