問題詳情
【題組】
(b) (5 points) Now we extend the benchmark model to assume that housebolds are heterogeneous.Consider that half of the bouseholds are type 1, and half of the households are type 2, Type1 and type 2 value consumptions differently, and this is captured by their difference in theparameter 7. Type I households' utility is
and type 2 households' utility is
