ci Logarithmic case of the two-country endowment model. Consider the pure endow- ment model, in which equilibrium
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ci Logarithmic case of the two-country endowment model. Consider the pure endow- ment model, in which equilibrium holds when S + S = 0. Home's utility function is U = log C+ Blog C. (42) Foreign has an analogous log utility function, with its consumption levels and time- preference factor distinguished by asterisks. Governments consume no resources.
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