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In the 1970s, Thomas C. Schelling proposed a model which claimed to show that a high degree of spatial segregation can result from individual preferences which do not in themselves aim to achieve such a degree of collective segregation. A perverse effect seems therefore to occur. However, the...
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consumption increases whenever the constraint binds. The equilibrium interest rate and asset prices are characterized under very … leading to an explicit solution, (ii) a constructive approach to the determination of equilibrium, and (iii) a numerical …
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