RDP 8808: Consumption and Permanent Income: The Australian Case
Equation (19)
Δ
C
t
=
(
γ
−
1
)
C
t
−
1
+
(
1
−
Ω
)
Δ
Y
t
−
(
γ
−
1
)
(
1
−
Ω
)
Y
t
−
1
+
μ
t
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