Financial Inclusion in Papua New Guinea

Intratemporal Trade: allocation of HH resources firms produce goods under perfect competition ⚫ identical unit labor requirements a (j) (superscript e refers to economy) • ae (j) < a' (j) (households less productive in all goods) but distance means HHs produce some goods. ⚫ wage rate fixed at w so price of good j: p (j) set p(j) = 1⇒ a² (j) = ae for all goods == wae (j) 1 = by choosing appropriately sized units W ⚫ Given HH technology, rate at which the household can convert labor into good jis given by 1/a' (j). <口> 590 Davies & Nettuno Financial Inclusion in Papua New Guinea August 4, 2022 12/36

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