We assume that there are two households in the economy and both the households either they choose to work in a rm and enjoy gardening in their backyard. Suppose two households are represented by i = 1, 2. The households either work in a firm (1:) or work in their backde which we denote it by (I ). Each household i is endowed with one unit of time, I, +h, =1. If the households work, they get the wage w which they can use to purchase consumption goods whose price is normalized to 1. The garden size represented by g, is proportional to the time which they spend in gardening i.e. g, = 7/1,. Households derive utility from consumption 0, and from the total amount of gardens in the economy ( g1 +g2 ), i.e. they enjoy looking at their neighbor's garden too. The representative households\" preferences are therefore U =(c,.,g1+g2)for households 3' = 1,2. Firms hire labor only and produce with technology y= f (:1). Assume there are no dividends distributed to the households and no taxes/transfers