Cocco, João F. (contributor) - 2000 - [Elektronische Ressource]
objective function of
household i is:
max
H
t
,C
t
E
0
T
X
t=1
β
t
³
H
δ
t
t
C
1−δ
t
t
´
1−γ
1−γ
+β
T+1
W
1−γ
T+1
1−γ
(1)
where … period t by X
t
.LetM
t
be an indicator variable which takes the
value of one when the household moves houses and zero … otherwise. The equations describing
the evolution of cash-on-hand:
X
t+1
=
e
Y
t+1
+(X
t
−C
t
+B
t
−B
t−1
)(1+er
t+1
)+((1−λ)P
t …