Citation Context

...our supply decision. MRSt denotes for the marginal rate of substitution between labour and consumption. We assume that labour markets are competitive and also that individuals work in each sector z 2 =-=[0; 1]-=-. Therefore, Lt corresponds to the aggregate labour supply: Lt = Z 1 Lt(z)dz: (2.5) 0 42.2 Firms 2.2.1 Final good producers There is a continuum of …nal good producers of mass one, indexed by f 2 [0;...