Jappelli, Tullio (contributor); Padula, Mario (contributor); … - 2007
inequality (8) is:
hatwideθ = cov(xh −x∗h,ch)
cov(xh −x∗h,xh) =
summationtextH
h=1((xh −x
∗
h)−
parenleftbigx
h −x … satisfy the following inequality:
r −δ
ρ +
ρ
2σ
2
N < g −
1
2σ
2
N (9)
where lnR ≈ r, lnβ ≈ −δ, and lnG ≈ g.
2.1 Test …, there exists a unique and stable value of x (which
we call x∗ and term, again for brevity, “target wealth to permanent …