RDP 9812: An Optimising Model for Monetary Policy Analysis: Can Habit Formation Help? Equation (B5)

c t − y t = ∑ j=1 ∞ p j ( r t+j −Δ c t+j )+ρk/( 1−ρ )+ E t ∑ j=1 ∞ ρ j ( Δ y t+j − r t+j )− ρk/( 1−ρ )= ∑ j=1 ∞ p j ( Δ y t+1 −Δ c t+1 ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaacaWGJb WaaSbaaSqaaiaadshaaeqaaOGaeyOeI0IaamyEamaaBaaaleaacaWG 0baabeaakiabg2da9maaqahabaGaamiCamaaCaaaleqabaGaamOAaa aaaeaacaWGQbGaeyypa0JaaGymaaqaaiabg6HiLcqdcqGHris5aOWa aeWaaeaacaWGYbWaaSbaaSqaaiaadshacqGHRaWkcaWGQbaabeaaki abgkHiTiabfs5aejaadogadaWgaaWcbaGaamiDaiabgUcaRiaadQga aeqaaaGccaGLOaGaayzkaaGaey4kaSIaeqyWdiNaam4Aaiaac+cada qadaqaaiaaigdacqGHsislcqaHbpGCaiaawIcacaGLPaaacqGHRaWk caWGfbWaaSbaaSqaaiaadshaaeqaaOWaaabCaeaacqaHbpGCdaahaa WcbeqaaiaadQgaaaaabaGaamOAaiabg2da9iaaigdaaeaacqGHEisP a0GaeyyeIuoakmaabmaabaGaeuiLdqKaamyEamaaBaaaleaacaWG0b Gaey4kaSIaamOAaaqabaGccqGHsislcaWGYbWaaSbaaSqaaiaadsha cqGHRaWkcaWGQbaabeaaaOGaayjkaiaawMcaaiabgkHiTaqaaiabeg 8aYjaadUgacaGGVaWaaeWaaeaacaaIXaGaeyOeI0IaeqyWdihacaGL OaGaayzkaaGaeyypa0ZaaabCaeaacaWGWbWaaWbaaSqabeaacaWGQb aaaaqaaiaadQgacqGH9aqpcaaIXaaabaGaeyOhIukaniabggHiLdGc daqadaqaaiabfs5aejaadMhadaWgaaWcbaGaamiDaiabgUcaRiaaig daaeqaaOGaeyOeI0IaeuiLdqKaam4yamaaBaaaleaacaWG0bGaey4k aSIaaGymaaqabaaakiaawIcacaGLPaaaaaaa@90FD@