RDP 8808: Consumption and Permanent Income: The Australian Case Equation (18)

C t+1 =γ( C t − C t v )+ μ t+1 + Y t+1 v C t+1 =γ C t −γ(1−Ω) Y t +(1−Ω) Y t+1 + μ t+1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaqGdb WaaSbaaSqaaiaabshacqGHRaWkcaaIXaaabeaakiabg2da9iabeo7a NjaacIcacaqGdbWaaSbaaSqaaiaabshaaeqaaOGaeyOeI0Iaae4qam aaDaaaleaacaqG0baabaGaaeODaaaakiaacMcacqGHRaWkcqaH8oqB daWgaaWcbaGaaeiDaiabgUcaRiaaigdaaeqaaOGaey4kaSIaaeywam aaDaaaleaacaqG0bGaey4kaSIaaGymaaqaaiaabAhaaaaakeaacaqG dbWaaSbaaSqaaiaabshacqGHRaWkcaaIXaaabeaakiabg2da9iabeo 7aNjaaboeadaWgaaWcbaGaaeiDaaqabaGccqGHsislcqaHZoWzcaGG OaGaaGymaiabgkHiTiabfM6axjaacMcacaqGzbWaaSbaaSqaaiaabs haaeqaaOGaey4kaSIaaiikaiaaigdacqGHsislcqqHPoWvcaGGPaGa aeywamaaBaaaleaacaqG0bGaey4kaSIaaGymaaqabaGccqGHRaWkcq aH8oqBdaWgaaWcbaGaaeiDaiabgUcaRiaaigdaaeqaaaaaaa@6E0F@