eldorado.tu-dortmund.de/server/api/core/bitstreams/9d11dcaa-c5f6-4096-8fe9-845813474685/content
clears,
C + δK + G + ∫
x1d(j,a,i,η,x,h)=0dΦ = F(K, L)− ξ ∫ 1d(j,a,i,η,x,h)=1×(
y(j, a, i, η, x, h)− T (ỹ(j, a, i, η, x, h))− τss min{y(j, a, i, η, x, h), ŷ} )
dΦ,
(2.24)
19
BORROWING CONSTRAINTS, EQUILIBRIUM [...] zero-profit condition for a loan of the amount a′ to borrowers of type (j, i, η, x) is given by
(−a′)q(j, a′, i, η, x, 0)(1 + r + ι) = (−a′)E1d(j+1,a′,i,η′,x′,0)=0+
(−a′)E1d(j+1,a′,i,η′,x′,0)=1 ξ ( wε jνiηl [...] EQUILIBRIUM DEFAULT, AND PROGRESSIVE TAXATION
9. aggregate consumption and aggregate positive asset holdings are given by
C = ∫
c(j, a, i, η, x, h)dΦ, (2.25)
A+ = ∫
a′(j, a, i, η, x, h)1a′>0dΦ, (2.26)
10. the invariant …
