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Here are the steps that my professor does to find Arrow Debreu equilibrium but I can not figure out the allocation. If the allocation exists,
Here are the steps that my professor does to find Arrow Debreu equilibrium but I can not figure out the allocation. If the allocation exists, is it Pareto optimal and why?
Note: the first image is the reference and the second is the steps
\fConsider a pure exchange economy with 2 consumers, 2 physical commodities, and 2 time periods. In order to simplify notation we will denote quantities of goods by :5,- and their prices by pi, where good 1, period 1 good 2, period 1 good 1, period 2 HSOJMIt good 2, period 2 Consumer A has utility function uA(:r1, $2,553, 334) = V231 + $2 + (ix/:53 + x4, Where 0Step by Step Solution
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