RDP 8808: Consumption and Permanent Income: The Australian Case Equation (21)

where ρ t = μ t +αΩ ε t (1+ r h ) μ t1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeaabeGaaa qaaiaabEhacaqGObGaaeyzaiaabkhacaqGLbaabaGaeqyWdi3aaSba aSqaaiaabshaaeqaaOGaeyypa0JaeqiVd02aaSbaaSqaaiaabshaae qaaOGaey4kaSIaeqySdeMaeuyQdCLaeqyTdu2aaSbaaSqaaiaabsha aeqaaOGaeyOeI0IaaiikaiaaigdacqGHRaWkcaqGYbWaaWbaaSqabe aacaqGObaaaOGaaiykaaaacqaH8oqBdaWgaaWcbaGaaeiDaiabgkHi Tiaaigdaaeqaaaaa@52E0@