Production saving model
Hence the Euler equation is
st
1 st = αβ1
1 st+ 1
1 st
st=^1
αβ( 1 st+ 1 )αβ1
st1
= 1 st+ 1st+ 1 = 1 +αβ αβs
t
greg delong
(Greg DeLong)
#1
Hence the Euler equation is
st
1 st = αβ1 st+ 1
1 st
stαβ( 1 st+ 1 )αβst= 1 st+ 1st+ 1 = 1 +αβ αβs
t