|
67 | 67 | " problem and the Hicks-Arrow prices. \n", |
68 | 68 | "- A **Big** $ K $ **, little** $ k $ trick widely used in\n", |
69 | 69 | " macroeconomic dynamics. \n", |
70 | | - "\n", |
71 | | - "\n", |
72 | | - "> - We shall encounter this trick in [this lecture](https://lectures.quantecon.org/py/rational_expectations.html#)\n", |
73 | | - " and also in [this lecture](https://lectures.quantecon.org/py/dyn_stack.html#). \n", |
74 | | - "\n", |
75 | | - "\n", |
76 | | - "\n", |
| 70 | + " - We shall encounter this trick in [this lecture](https://lectures.quantecon.org/py/rational_expectations.html#)\n", |
| 71 | + " and also in [this lecture](https://lectures.quantecon.org/py/dyn_stack.html#). \n", |
77 | 72 | "- A non-stochastic version of a theory of the **term structure of\n", |
78 | 73 | " interest rates**. \n", |
79 | 74 | "- An intimate connection between the cases for the optimality of two\n", |
80 | 75 | " competing visions of good ways to organize an economy, namely: \n", |
81 | | - "\n", |
82 | | - "\n", |
83 | | - "> - **socialism** in which a central planner commands the\n", |
84 | | - " allocation of resources, and \n", |
85 | | - "- **capitalism** (also known as **a market economy**) in\n", |
86 | | - " which competitive equilibrium **prices** induce individual\n", |
87 | | - " consumers and producers to choose a socially optimal allocation\n", |
88 | | - " as an unintended consequence of their selfish\n", |
89 | | - " decisions \n", |
90 | | - "\n", |
| 76 | + " - **socialism** in which a central planner commands the\n", |
| 77 | + " allocation of resources, and \n", |
| 78 | + " - **capitalism** (also known as **a market economy**) in\n", |
| 79 | + " which competitive equilibrium **prices** induce individual\n", |
| 80 | + " consumers and producers to choose a socially optimal allocation\n", |
| 81 | + " as an unintended consequence of their selfish\n", |
| 82 | + " decisions \n", |
91 | 83 | "\n", |
92 | 84 | "\n", |
93 | 85 | "Let’s start with some standard imports:" |
|
678 | 670 | "Combining [(12)](#equation-cond4) and [(2)](#equation-eq-price), we get:\n", |
679 | 671 | "\n", |
680 | 672 | "$$\n", |
681 | | - "- \\beta^{T+1} \\mu_{T+1} \\leq 0\n", |
| 673 | + "-\\beta^{T+1} \\mu_{T+1} \\leq 0\n", |
682 | 674 | "$$\n", |
683 | 675 | "\n", |
684 | 676 | "Dividing both sides by $ \\beta^{T+1} $ gives\n", |
|
1179 | 1171 | } |
1180 | 1172 | ], |
1181 | 1173 | "metadata": { |
1182 | | - "date": 1601775349.1316106, |
| 1174 | + "date": 1603747460.4534752, |
1183 | 1175 | "filename": "cass_koopmans_2.rst", |
1184 | 1176 | "kernelspec": { |
1185 | 1177 | "display_name": "Python", |
|
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