External link to Autarky and Economics Questions and Answers

Autarky and Economics Questions and Answers

 Question 1 (a). Write down the problem of an agent that maximizes ex-ante utility in autarky. Find the conditions that characterise the allocation in autarky. Explain how the allocation changes with β. Autarky is a situation where no trading takes place between agents. Each agent needs to provide for his own needs in an autarky, ie he independently chooses the amount of I that he […]

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