Hindriks, J. and G. D. Myles (2006/2013), Intermediate Public Economics, MIT Press; (2) Atkinson, A. B. and J. E. Stiglitz (1980), Lectures on Public Economics, McGraw-Hill;

2. Consider a competitive economy with two goods, 9: and 3;. There are a continuum of identical consumers with measure 1. Each consumer has initial endowments w = (whiny), where was > 0 and nag = O. The consumer's utility function is given by: U = a 1n 0m + (1 0011109, where C\"m (Cy) is consumption of good a: (good 3;) and 0