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Unformatted text preview: < < 1 be governments discount factor across generations. Government objective is to maximize X t =0 t U t Exercise: Show that, in this environment, implementability constraint for generation t is the following U c t, c t, + U l t, l t, + ( U c t, 1 c t, 1 + U l t, 1 l t, 1 ) = 0 (38) 27...
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This note was uploaded on 12/10/2011 for the course MAT 121 taught by Professor Wong during the Fall '10 term at SUNY Stony Brook.
- Fall '10