Christoffel, Kai; Küster, Keith; Linzert, Tobias - 2009
real price x
L
t
. Real period profits of firm j,Ψ
C
j,t
,are
given by
Ψ
C
j,t
=
P
j,t
P
t
y
j,t
−e
C
t
l
d
j,t
x
L
t
.
The … costs, with mc
t
= e
C
t
x
L
t
, and β
t,t+s
:= β
s
λ
t+s
λ
t
is the equilibrium stochastic discount factor. The typical re …
bracketrightBigbracerightBig
.
(23)
Here
Ψ
L
t
(W
i,t
)=x
L
t
z
t
h
α
i,t
−
W
i,t
P
t
h
i,t
−Φ (24)
denotes real per-period profits of the firm …