RDP 8808: Consumption and Permanent Income: The Australian Case
Equation (22)
Δ
C
t
=
(
1
−
Ω
)
Δ
Y
t
+
α
Δ
A
t
+
r
h
(
C
t
−
1
−
(
1
−
Ω
)
(
1
+
r
h
)
Y
t
−
1
−
α
A
t
−
1
)
−
α
Ω
Y
t
−
1
+
ρ
t
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