On 2), the condition you find makes sense, but aren’t you implicitly assuming an elasticity of substitution of 1 with Cobb-Douglas?
Yes, definitely. In general, I don’t have a great idea about what Z(⋅) looks like. The Cobb-Douglas case is just an example.
Yes, definitely. In general, I don’t have a great idea about what Z(⋅) looks like. The Cobb-Douglas case is just an example.