RDP 8808: Consumption and Permanent Income: The Australian Case
Equation
where
ε
t
=
Σ
s
=
0
∞
R
t
+
s
(
E
t
Y
t
+
s
−
E
t
−
1
Y
t
+
s
)
and
R
t
+
s
h
=
Π
n
=
0
s
(
1
+
r
t
+
s
h
)
(
1
+
r
t
+
n
h
)
−
1
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