Show more Can somone help me with this high level macroeconomics problem?

The linear quadratic permanent incom Show more Can somone help me with this high level macroeconomics problem? The linear quadratic permanent income model is a very useful general equilibrium model that we can solve in closed form. It specifes a production technology rather than fixed endowments and it easily allows aggregation of disparate consumers. In this economy the consumer maximises: where et is an exogenous endowment or labor income stream. Assume (beta)B =1/(1+r); the discount rate rate equals the interest rate or marginal productivity of capital. Show that optimal consumption follows: This shows that consumption equals permanent income orginated by Friedmans permanent income hypothesis. Show less

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