Méjean, Isabelle (contributor); Patureau, Lise (contributor) - 2007
’s consumption (1) under her budget constraint (2)
leads to the optimal demand functions:
CX = µ IP
X
(3)
CZ = (1−µ)I (4)
c … associated expenditure-minimizing price index in sector X defined as:
PX =
bracketleftBigintegraltextn
0 p(h)
1−σdh … forI,I∗,p,p∗,PX andP∗X in the symmetric equilibrium, one can derive the
short-run elasticity of operating profits to w in …