noncontingent bond, denominated in units of
the final good, and equity claims on the dividend stream of private sector firms. The …
period t by Dt. They also hold a noncontingent real bond, Bt,v, that earns a gross real interest rate
of Rt.
Households … representative household born on date v chooses sequences of end-of-period bond and equity
claim holdings, Bt+1,v and St+1,v, and …