RDP 8808: Consumption and Permanent Income: The Australian Case Equation (19)

Δ C t =(γ−1) C t−1 +(1−Ω)Δ Y t −(γ−1)(1−Ω) Y t−1 + μ t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeuiLdqKaae 4qamaaBaaaleaacaqG0baabeaakiabg2da9iaacIcacqaHZoWzcqGH sislcaaIXaGaaiykaiaaboeadaWgaaWcbaGaaeiDaiabgkHiTiaaig daaeqaaOGaey4kaSIaaiikaiaaigdacqGHsislcqqHPoWvcaGGPaGa euiLdqKaaeywamaaBaaaleaacaqG0baabeaakiabgkHiTiaacIcacq aHZoWzcqGHsislcaaIXaGaaiykaiaacIcacaaIXaGaeyOeI0IaeuyQ dCLaaiykaiaabMfadaWgaaWcbaGaaeiDaiabgkHiTiaaigdaaeqaaO Gaey4kaSIaeqiVd02aaSbaaSqaaiaabshaaeqaaaaa@5D08@