Question: We are required to write a Python Code for this. Please help Question 2: General Equilibrium (60 Marks) Consider a simple endowment economy with four
We are required to write a Python Code for this. Please help

Question 2: General Equilibrium (60 Marks) Consider a simple endowment economy with four agents and two goods. Agent 2' is initially endowed with eij units of good j and maximizes the following utility function: U1-(z13) : H3331\" (1) subject to the budget constraint 2 2 Z Pij : Z Pjeij- (2) j:1 j:1 Here, 331-}- is the amount of good j consumed by agent i, pj is the market price of good j, and adj > 0 are preference parameters. A competitive general equilibrium for the endowment economy is a pair of relative prices, p1 and p2, normalized to sum to one, such that all the goods markets clear and each agent maximizes utility subject to their budget constraints. (a) Write a Python code to compute the competitive general equilibrium for the following parameters: (M) an 819' (1,1) 0.50 2.0 (1,2) 0.50 3.0 (2,1) 0.75 1.0 (2,2) 025 2.0 (3,1) 0.80 4.0 (3,2) 0.20 0.0 (4,1) 0.25 0.0 (4 2) 0.75 2.0 Comment on your ndings
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
