RDP 8808: Consumption and Permanent Income: The Australian Case
Equation
C
t
=
α
A
t
+
(
1
+
r
h
)
C
t
−
1
+
(
1
−
Ω
)
Y
t
−
α
(
1
+
r
h
)
A
t
−
1
−
Ω
α
(
1
+
r
h
)
Y
t
−
1
−
(
1
+
r
h
)
(
1
−
Ω
)
Y
t
−
1
+
ρ
t
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