Production saving model
∂L
∂kt=λt 1 λtf^0 (kt) νtkt= 0.If we exclude corner solutions thenνt=μt=0 and thenλt 1 = λtf^0 (kt)
λt = βtU^0 (ct)
greg delong
(Greg DeLong)
#1
∂kt=λt 1 λtf^0 (kt) νtkt= 0.If we exclude corner solutions thenνt=μt=0 and thenλt 1 = λtf^0 (kt)
λt = βtU^0 (ct)