Skip to content
RDP 9812: An Optimising Model for Monetary Policy Analysis: Can Habit Formation Help?
Equation (B2)
a
1
(
C
t
−
C
0
)
+
a
2
P
t
−
a
3
(
Z
t
−
C
0
)
+
k
0
=
E
t
[
(
1
+
r
¯
)
β
(
a
1
(
C
t
+
1
−
C
0
)
+
a
2
P
t
+
1
−
a
3
(
Z
t
+
1
−
C
0
)
)
−
δ
(
1
+
r
t
+
1
)
]
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaacaWGHb WaaSbaaSqaaiaaigdaaeqaaOWaaeWaaeaacaWGdbWaaSbaaSqaaiaa dshaaeqaaOGaeyOeI0Iaam4qamaaBaaaleaacaaIWaaabeaaaOGaay jkaiaawMcaaiabgUcaRiaadggadaWgaaWcbaGaaGOmaaqabaGccaWG qbWaaSbaaSqaaiaadshaaeqaaOGaeyOeI0IaamyyamaaBaaaleaaca aIZaaabeaakmaabmaabaGaamOwamaaBaaaleaacaWG0baabeaakiab gkHiTiaadoeadaWgaaWcbaGaaGimaaqabaaakiaawIcacaGLPaaacq GHRaWkcaWGRbWaaSbaaSqaaiaaicdaaeqaaOGaeyypa0dabaGaamyr amaaBaaaleaacaWG0baabeaakmaadmaabaWaaeWaaeaacaaIXaGaey 4kaSIabmOCayaaraaacaGLOaGaayzkaaGaeqOSdi2aaeWaaeaacaWG HbWaaSbaaSqaaiaaigdaaeqaaOWaaeWaaeaacaWGdbWaaSbaaSqaai aadshacqGHRaWkcaaIXaaabeaakiabgkHiTiaadoeadaWgaaWcbaGa aGimaaqabaaakiaawIcacaGLPaaacqGHRaWkcaWGHbWaaSbaaSqaai aaikdaaeqaaOGaamiuamaaBaaaleaacaWG0bGaey4kaSIaaGymaaqa baGccqGHsislcaWGHbWaaSbaaSqaaiaaiodaaeqaaOWaaeWaaeaaca WGAbWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaakiabgkHiTiaa doeadaWgaaWcbaGaaGimaaqabaaakiaawIcacaGLPaaaaiaawIcaca GLPaaacqGHsislcqaH0oazdaqadaqaaiaaigdacqGHRaWkcaWGYbWa aSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaaaOGaayjkaiaawMcaaa Gaay5waiaaw2faaaaaaa@7EDA@