PDA

View Full Version : Linder's Hypothesis help


balkie
Jan 28, 2013, 05:58 AM
In the discussion paper ''The effect of cross-country differences in product quality on the direction of international trade'' by J.C. Hallak, on page 6 of the document there are 2 equations under (3) and (4). Why are the equations like this? If I am correct, they are restrictions or subjects of maximalisation of weakly separale function? But why are they like this? Are they extracted from another equation?