Re: Intertemporal Maximization

Posted by kangkan on Feb 12, 2014; 5:01pm
URL: http://discussion-forum.276.s1.nabble.com/Intertemporal-Maximization-tp7584733p7584741.html

Hi..Are you referring to Example 17.14 on page 643.. i looked it up...but in this case the the function to be maximized shoud be Integral(0 to infinity) Delta^t* ln(ct)..and the budget constraint will be integral(0 to infinity) e^-delta*t*c(t)...hence the the special case condition mentioned in the example seems inapplicable..thats how it seems to me..would appreciate your input..thanks