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Please if you dont know the answer, do not waste my questions. Using PYTHON solve this question. attach computer output Studying labor supply decisions in
Please if you dont know the answer, do not waste my questions.
Using PYTHON solve this question. attach computer output
Studying labor supply decisions in class we have considered both log-log and CRRA preferences, however in both cases they have been separable. Consider the preferences below U(C,L)=(1C(1L)1)1 - these are non-separable preferences (the cross-partial derivative is non-zero) - parameter is like our weight before - it controls the preference for consumption versus leisure. 1. For given wealth A, wage w and tax rate on labor earnings , derive analytically the labor supply curve (i.e. L, as a function of w, A ) from the problem below maxC,LU(C,1L)s.tC(1)wL+A 2. Write a function Isupply that computes the optimal labor supply given wealth, wages and tax rate. In two separate graphs, plot how labor supply varie with wealth and then with tax rate (for a given wage w )Step by Step Solution
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