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February 1, 1998

Analyzing fiscal policy in the Netherlands: simulations with a revised MIMIC

-orderconditionsof the householdoptimizationproblem,we derivethe following demandfunctions: (2a)A α Y (pa/py)σy (2b)C (1 α) Y (pc/py)σy (2c)Ci αi C (pci/pc) σc i l,k (2d)Cj αj Cl (pcj/pcl) σl i f,b Expressions(2a