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in-work/quantecon_undergrad_notes_tom_3.md

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@@ -316,7 +316,7 @@ Let's illustrate how.
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We want to represent the utility function
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$$
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- .5 [(c_1 - b_1)^2 + \beta (c_2 - b_2)^2]
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-.5 [(c_1 - b_1)^2 + \beta (c_2 - b_2)^2]
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$$
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where $\beta \in (0,1)$ is a discount factor, $c_1$ is consumption at time $1$ and $c_2$ is consumption at time 2.
@@ -518,3 +518,4 @@ Thus, in the multiple case as for the single-good case, a competitive equilibri
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(This is another version of the first welfare theorem.)
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We can read the competitive equilbrium price vector off the inverse demand curve or the inverse supply curve.
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