Derive the discounted utility of the elite when the middle, Econometrics

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Derive the discounted utility of the elite when the middle

Consider the model in Section 22.4, and suppose that the middle class are in political power. Characterize the MPE in this case. Derive the discounted utility of the elite when the middle class are in control of politics, denoted by V^e(M), and compare this to their utility when they are in control, V^e(E).

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Econometrics: Derive the discounted utility of the elite when the middle

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