original_query: What is the utility function that households maximize in this model?
query: What is the utility function that households maximize in Stiglitz's model?
answer: In Stiglitz's model, households maximize a utility function U(x<sub>h</sub>, z<sub>h</sub>), where x<sub>h</sub> is the consumption vector and z<sub>h</sub> are other variables affecting household utility (e.g., pollution).