$title A Household's Utility Max. Model in Ch. 3 (HHMAX,SEQ=274) $onText No description. Hosoe, N, Gasawa, K, and Hashimoto, H Handbook of Computible General Equilibrium Modeling University of Tokyo Press, Tokyo, Japan, 2004 Keywords: nonlinear programming, general equilibrium model, utility maximization problem $offText Set i 'goods' / BRD 'bread', MLK 'milk' / h 'factors' / CAP 'capital', LAB 'labor' /; Parameter alpha(i) 'share parameter in utility function' / BRD 0.2, MLK 0.8 / px(i) 'price of the i-th good' / BRD 1 , MLK 2 / pf(h) 'price of the h-th factor' / CAP 2 , LAB 1 / FF(h) 'factor endowment' / CAP 10 , LAB 20 /; Positive Variable X(i) 'consumption of the i-th good'; Variable UU 'utility'; Equation eqX(i) 'household demand function' obj 'utility function'; eqX(i).. X(i) =e= alpha(i)*sum(h, pf(h)*FF(h))/px(i); obj.. UU =e= prod(i, X(i)**alpha(i)); * Setting Lower Bounds on Variables to Avoid Division by Zero X.lo(i) = 0.001; Model HHmax / all /; solve HHmax maximizing UU using nlp;