Exercise 23.3. (1) Prove Proposition 23.2. (2) Generalize the result in Proposition 23.2 to the case where

Question:

Exercise 23.3. (1) Prove Proposition 23.2. (2) Generalize the result in Proposition 23.2 to the case where θe 6= θm. In particular, derive an inequality that determines when the dictatorship of the elite will generate greater output per capita than the dictatorship of the middle class.

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