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- • Hyperbolic preferences: assume that A is defined as in equation (44). Let rewrite the spatial equilibrium as a variational inequality (see Lions (2008)) X
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- For instance, if the preferences are log, as in Beckmann (1976), Zi (σi(x), ζi(x)) = σi(x) + φln (ζi(x)) then ∀x ∈ 0, ln [s+(1−s)γe∗ ]tN φ +e φ RA φ −ln RA φ [s+(1−s)γe∗]t ∗ (x) = e ln [s+(1−s)γe∗ ]tN φ +e φ RA φ − [s+(1−s)γe∗ ]t φ x
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