This is entrepreneur’s optimal problem which is based on the BGG(1999) framework. I add and constraint that L less than or equal to a certain number(This is 2, but it can be any other number which is slightly greater than steady state).
These are first-order condition. 2.11 is derivative to omegabar, 2.12 is to L, 2.13 is to lambdaB, 2.14 is uncorrelated, 2.15 is a set of complementary slackness condition.
