2.5 Equilibrium conditions
1. Aggregate and individual behavior are consistent, i.e. the sum of the individual
consumption, effective labor supply, wealth, and money is equal to the aggregate
level of consumption, effective labor supply, wealth, and money, respectively:
Ct
ne T+TR
=XX
j=1 s=1
s,j μ (j )
с ,∙j -----------------
t T + TR
ne T
Nt = XX n e ( s,j ) ::■
j=1 s=1
ne T+TR
Kt = XX ksj TTR
j=1 s=1
ne T+TR
Σ∖ ʌ s,j μ (j )
m m mt τ+TR
j=1 s=1
(23a)
(23b)
(23c)
(23d)
2. Households maximize life-time utility (1).
3. Firms maximize profits.
4. The goods market clears:
ztKtαNt1-α =Ct+Kt+1+(1-δ)Kt.
5. The government budget (21) balances.
6. Monetary growth (18) is stochastic and seignorage is transferred to the govern-
ment.
7. Technology is subject to a shock (14).
The non-stochastic steady state and the log-linearization of the model at the non-
stochastic steady state are described in more detail in the appendix. In addition, we
will compare our OLG model with the corresponding representative-agent model which
we briefly describe in the following.
More intriguing information
1. Should informal sector be subsidised?2. INTERPERSONAL RELATIONS AND GROUP PROCESSES
3. What Contribution Can Residential Field Courses Make to the Education of 11-14 Year-olds?
4. A MARKOVIAN APPROXIMATED SOLUTION TO A PORTFOLIO MANAGEMENT PROBLEM
5. Altruism with Social Roots: An Emerging Literature
6. The Economics of Uncovered Interest Parity Condition for Emerging Markets: A Survey
7. The name is absent
8. The Modified- Classroom ObservationScheduletoMeasureIntenticnaCommunication( M-COSMIC): EvaluationofReliabilityandValidity
9. Opciones de política económica en el Perú 2011-2015
10. Behavioural Characteristics and Financial Distress