Altig, David; Christiano, Lawrence J.; Eichenbaum, Martin S. - 2004 - [Elektronische Ressource]
discussion of the solution to firm-specific capital models in simpler settings.
13
Y
t
= α+B(L)Y
t−1
+u
t
, (3.2)
Eu
t
u
0
t
= V …, 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 …