RDP 9306: Inventories and the Business Cycle
Equation (1)
min
{
Y
t
}
E
[
∑
i
=
0
∞
(
1
+
θ
)
−
i
{
γ
2
(
Y
t
+
i
−
u
t
+
i
)
2
+
β
2
(
I
t
+
i
−
I
t
+
i
*
)
2
}
Ω
t
]
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