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Journal of Monetary Economics - Columbia University

Journal of Monetary Economics - Columbia University

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The household cares about a composite good, a t, given by at ¼ Z 1 0 ðx itc Þ 1 1=Z di 1=ð1 1=ZÞ, ð2Þ where Z41 denotes the elasticity of substitution across different good varieties.Note that the utility of the household increases with the quality content of each good.

  Economic, University, Columbia university, Columbia, Monetary, Monetary economics

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