2009年5月28日木曜日

Comment on Hwk 7-(1-vii)

Regarding the phrase " if we choose $\lambda_1,\lambda_2,\theta_1,\theta_2$ appropriately",
I did not mean that these parameters can be chosen independently.
This question just asks you to chose these parameters which is consistent with
FOCs for social planner's problem and brings FOCs in (1-iv) coincide with FOCs in (1-ii).

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