0
   

Public good, I think Lindahl equilibrium? HELP!

 
 
Reply Wed 13 Apr, 2016 12:39 am
I have a private good, x and public good y. Two people A and B consume with budget constraints of Xa+Ya=70, Xb+Yb=70 where Px=Py=1.

Utility functions for A and B are the same, UA= 3InXa+InY, UB=3InXb+InY where Y=Ya+Yb.
I don't know how to find optimal consumptions for Ya, Yb and pareto efficient consumptions of Ya, Yb.

I can say that MRSa=MRSb=Xa/3Y=Xb/3Y=(Px/Py)=1.
But I'm stuck from this point on. Any help?

  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Question • Score: 0 • Views: 2,242 • Replies: 0
No top replies

 
 

Related Topics

Who or What is Responsible? - Discussion by Merry Andrew
Debt ceiling? - Question by Buffalo
The Legacy of the Reagan Revolution - Discussion by Cycloptichorn
Let it crash - Discussion by FreeDuck
No real limits to growth - Discussion by gungasnake
Sovereign debt - Question by JohnJD
Wage discrimination - Question by zewittykitty
Central Bank Operations? - Question by NewToEcons
Frictional unemployment vs structural - Question by MateuszJanczura
 
  1. Forums
  2. » Public good, I think Lindahl equilibrium? HELP!
Copyright © 2024 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.06 seconds on 11/24/2024 at 05:53:45