Bullard, James Brian (contributor); Duffy, John (contributor) - 2004 - [Elektronische Ressource]
Department, Federal Reserve Bank of St. Louis, 411 Locust Street, St.
Louis, MO 63102 USA. Telephone: (314) 444-8576. Email … letter, such as ˆc
t
. With this
notation in mind, we write the household problem as maximization of
E
t
∞
X
t=0
β
t
η
t
h … every date t:
C
t
+ I
t
≤ Y
t
, (2)
I
t
= K
t+1
−(1−δ)K
t
, (3)
Y
t
=ˆs
t
K
α
t
³
X
t
N
t
ˆ
null
t
´
1−α
, (4)
X
t
= γX
t−1 …