Description
These comments were initially made in the wrong place but should have been in the [olg] lecture.
Comments @Jiarui-ZH:
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Specify the time t = 2 in the sentence"We assume that time is discrete, so that t = 0, 1, ..."
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Clarify convoluted sentence: “Their financial income is from interest on their savings from wage income, which is then combined with the labor of the new young generation at t+1.”Old guys have savings, which is capital. Production usually needs savings (capital) and labor from young energetic guys (labor).
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Clarify “We normalize the constant population size in each period to 1.”? We assume that the population is constant, so we normalize the population size to 1.
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Delete “Since u is strictly increasing, both of these constraints will hold as equalities at the maximum.” Make inequalities equalities:
for equation 24.2
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Clarify that R is gross interest rate r?
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Rename “24.3.2. Example: log preferences” to special case (“24.3.2. Special case: log preferences”?)
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Explain Equation 24.8 (the logic of it and what each element means)
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Clarify that w_t and l_t in terms of Equation 24.8 and
- Clarify Equation 24.11 where it stresses that aggregate demand for capital for time t+1, which we write as a function for the interest rate.
- Clarify Equation 24.6