Altig, David; Christiano, Lawrence J.; Eichenbaum, Martin S. - 2004 - [Elektronische Ressource]
, P
t
/P
t−1
.
An intermediate goods firm’s objective function is:
E
t
∞
X
j=0
β
j
υ
t+j
£
P
t+j
(i)y
t+j
(i)−P
t+j
¡
w
t …. Our
notation reflectsthisresult.
The preferences of the j
th
householdaregivenby:
E
j
t
∞
X
l=0
β
l−t
∙
log(C
t+l
−bC
t …
t
+(x
t
−1)M
a
t
]+A
j,t
+Q
t
+W
j,t
h
j,t
(2.12)
+P
t
r
k
t
u
t
¯
K
t
+D
t
−(1 +η(V
t
))P
t
C
t
−P
t
Υ
−1
t
¡
I
t
+a …