Black, Dan A. (contributor); … - 2008
consumption good x, leisure l (which is
scaled so that 0 • l • 1), and an amenity level Aj (that is speciflc to location j …), according
to a simple Stone-Geary form:
(1) ui = ijAj(x¡c)–l1¡–;
where c and – are parameters that are common across …
for the consumption good are, respectively,
(2) l(wj;pj) = (1¡–)(N +wj ¡cpj)w
j
;
and
(3) x(wj;pj) = –(N +wj ¡cpj)p
j
+c …