Eichner, Thomas; Pethig, Rüdiger - 2009
. Good X is nontradable, and hence domestic con-
sumption is required to match domestic production
xi = xsi. (3)
4Upper case … =summationtext
j exj. The rationale of the differential treatment of the sectors X and Y is to model in the next section
the … implement the cap cxi in its sector X.
5
where µxi := λxi/λh and µe := λe/λh, and where λe, λh. The cost-effective allocation …