CGE (version 0.3.3)

Example.MWG.Exercise.15.B.6: Exercise 15.B.6 in MWG (1995)

Description

This is Exercise 15.B.6 in MWG (1995, P541), which is a pure exchange CES 2-by-2 economy.

Usage

Example.MWG.Exercise.15.B.6(p0 = c(1, 2))

Arguments

p0

an initial price 2-vector, which will be passed to the function sdm.

References

LI Wu (2019, ISBN: 9787521804225) General Equilibrium and Structural Dynamics: Perspectives of New Structural Economics. Beijing: Economic Science Press. (In Chinese)

Mas-Colell, Andreu and Whinston, Michael Dennis and Green, Jerry R. (1995, ISBN: 0195073401) Microeconomic Theory. Oxford University Press (New York).

Examples

# NOT RUN {
ge <- Example.MWG.Exercise.15.B.6()
ge$p / ge$p[2] # (3/4)^3

#####
ge <- Example.MWG.Exercise.15.B.6(p0 = c(2, 1))
ge$p / ge$p[2] # (4/3)^3

#####
ge <- Example.MWG.Exercise.15.B.6(p0 = c(1, 1))
ge$p
# }