Skip to content
RDP 8808: Consumption and Permanent Income: The Australian Case
Equation
C
t
=
α
A
t
+
(
1
+
r
h
)
C
t
−
1
+
(
1
−
Ω
)
Y
t
−
α
(
1
+
r
h
)
A
t
−
1
−
Ω
α
(
1
+
r
h
)
Y
t
−
1
−
(
1
+
r
h
)
(
1
−
Ω
)
Y
t
−
1
+
ρ
t
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaqGdb WaaSbaaSqaaiaabshaaeqaaOGaeyypa0JaeqySdeMaaeyqamaaBaaa leaacaqG0baabeaakiabgUcaRiaacIcacaaIXaGaey4kaSIaaeOCam aaCaaaleqabaGaaeiAaaaakiaacMcacaqGdbWaaSbaaSqaaiaabsha cqGHsislcaaIXaaabeaakiabgUcaRiaacIcacaaIXaGaeyOeI0Iaeu yQdCLaaiykaiaabMfadaWgaaWcbaGaaeiDaaqabaGccqGHsislcqaH XoqycaGGOaGaaGymaiabgUcaRiaabkhadaahaaWcbeqaaiaabIgaaa GccaGGPaGaaeyqamaaBaaaleaacaqG0bGaeyOeI0IaaGymaaqabaGc cqGHsislcqqHPoWvcqaHXoqycaGGOaGaaGymaiabgUcaRiaabkhada ahaaWcbeqaaiaabIgaaaGccaGGPaGaaeywamaaBaaaleaacaqG0bGa eyOeI0IaaGymaaqabaaakeaacqGHsislcaGGOaGaaGymaiabgUcaRi aabkhadaahaaWcbeqaaiaabIgaaaGccaGGPaGaaiikaiaaigdacqGH sislcqqHPoWvcaGGPaGaaeywamaaBaaaleaacaqG0bGaeyOeI0IaaG ymaaqabaGccqGHRaWkcqaHbpGCdaWgaaWcbaGaaeiDaaqabaaaaaa@7793@