of the EDEIR model of Section 4.1 as follows: U(c, h)= All other features of the model are unchanged. 4.15 Exercises Modify the period utility function [el-(1h)]-1 1-0 1. Derive analytically the steady state of the model. 2. Set all parameters of the model as in Table 4.1, except for o. Calibrate to ensure that in the deterministic steady state, hours equal 1/3 (i.e., ensure that in the steady state, households spend one-third of their time working). Calculate the implied value of o 3. Produce a table of predicted second moments similar to Table 4.2. When performing this step, you might find it convenient to use as a starting point the Matlab programs for the EDEIR SOE-RBC model posted on the book's Web site. 4. Compare the predictions of the present model with those of its GHH-preference counterpart.