RDP 8706: Numerical Solution of Rational Expectations Models with and Without Strategic Behaviour
Equation
V(X
t
,C
3t
)
=
S
1i
X
t
+
S
2i
E
t
– X
t
′
S
3i
X
t
– 2X
t
′
S
4i
E
t
– E
t
′
S
5i
E
t
where
V
it
=
Max
Ω
i
τ
it
U
it
–
τ
it
′
Ω
2
τ
it
+
δV
it+1
(X
t+1
,C
3t+1
)
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeaabiGaaa qaaaqaaiaabAfacaqGOaGaaeiwamaaBaaaleaacaqG0baabeaakiaa bYcacaqGdbWaaSbaaSqaaiaabodacaqG0baabeaakiaabMcacaaMc8 UaaGPaVlaab2dacaaMc8UaaGPaVlaabofadaWgaaWcbaGaaeymaiaa bMgaaeqaaOGaaeiwamaaBaaaleaacaqG0baabeaakiaabUcacaaMc8 Uaae4uamaaBaaaleaacaqGYaGaaeyAaaqabaGccaqGfbWaaSbaaSqa aiaabshaaeqaaOGaae4eGiaabccacaqGybWaa0baaSqaaiaabshaae aaiiaacqWFYaIOaaGccaqGtbWaaSbaaSqaaiaabodacaqGPbaabeaa kiaabIfadaWgaaWcbaGaaeiDaaqabaGccaqGtaIaaeiiaiaabkdaca qGybWaa0baaSqaaiaabshaaeaacqWFYaIOaaGccaqGtbWaaSbaaSqa aiaabsdacaqGPbaabeaakiaabweadaWgaaWcbaGaaeiDaaqabaGcca qGtaIaaeiiaiaabweadaqhaaWcbaGaaeiDaaqaaiab=jdiIcaakiaa bofadaWgaaWcbaGaaeynaiaabMgaaeqaaOGaaeyramaaBaaaleaaca qG0baabeaaaOqaaiaabEhacaqGObGaaeyzaiaabkhacaqGLbaabaGa aeOvamaaBaaaleaacaqGPbGaaeiDaaqabaGccaqG9aWaaCbeaeaaca qGnbGaaeyyaiaabIhacaaMc8UaaeyQdmaaBaaaleaacaqGPbaabeaa kiaabs8adaWgaaWcbaGaaeyAaiaabshaaeqaaaqaaiaabwfadaWgaa adbaGaaeyAaiaabshaaeqaaaWcbeaakiaabobicaaMc8UaaeiXdmaa DaaaleaacaqGPbGaaeiDaaqaaiab=jdiIcaakiaabM6adaWgaaWcba GaaeOmaaqabaGccaqGepWaaSbaaSqaaiaabMgacaqG0baabeaakiaa bUcacaaMc8UaaeiTdiaabAfadaWgaaWcbaGaaeyAaiaabshacaqGRa GaaeymaaqabaGccaqGOaGaaeiwamaaBaaaleaacaqG0bGaae4kaiaa bgdaaeqaaOGaaeilaiaaboeadaWgaaWcbaGaae4maiaabshacaqGRa GaaeymaaqabaGccaqGPaaaaaaa@A094@