RDP 9812: An Optimising Model for Monetary Policy Analysis: Can Habit Formation Help?
Equation (3)
1
C
t
(
C
t
Z
t
γ
)
(
1
−
σ
)
−
γ
(
1
−
σ
)
(
1
−
ρ
z
)
P
t
=
β
E
t
[
(
1
+
r
t
+
1
)
1
C
t
+
1
(
C
t
+
1
Z
t
+
1
γ
)
(
1
−
σ
)
]
−
β
γ
(
1
−
σ
)
(
1
−
ρ
z
)
E
t
[
(
1
+
r
t
+
1
)
P
t
+
1
]
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaadaWcaa qaaiaaigdaaeaacaWGdbWaaSbaaSqaaiaadshaaeqaaaaakmaabmaa baWaaSaaaeaacaWGdbWaaSbaaSqaaiaadshaaeqaaaGcbaGaamOwam aaDaaaleaacaWG0baabaGaeq4SdCgaaaaaaOGaayjkaiaawMcaamaa CaaaleqabaWaaeWaaeaacaaIXaGaeyOeI0Iaeq4WdmhacaGLOaGaay zkaaaaaOGaeyOeI0Iaeq4SdC2aaeWaaeaacaaIXaGaeyOeI0Iaeq4W dmhacaGLOaGaayzkaaWaaeWaaeaacaaIXaGaeyOeI0IaeqyWdi3aaS baaSqaaiaadQhaaeqaaaGccaGLOaGaayzkaaGaamiuamaaBaaaleaa caWG0baabeaakiabg2da9aqaaiabek7aIjaadweadaWgaaWcbaGaam iDaaqabaGcdaWadaqaamaabmaabaGaaGymaiabgUcaRiaadkhadaWg aaWcbaGaamiDaiabgUcaRiaaigdaaeqaaaGccaGLOaGaayzkaaWaaS aaaeaacaaIXaaabaGaam4qamaaBaaaleaacaWG0bGaey4kaSIaaGym aaqabaaaaOWaaeWaaeaadaWcaaqaaiaadoeadaWgaaWcbaGaamiDai abgUcaRiaaigdaaeqaaaGcbaGaamOwamaaDaaaleaacaWG0bGaey4k aSIaaGymaaqaaiabeo7aNbaaaaaakiaawIcacaGLPaaadaahaaWcbe qaamaabmaabaGaaGymaiabgkHiTiabeo8aZbGaayjkaiaawMcaaaaa aOGaay5waiaaw2faaiabgkHiTiabek7aInaaBaaaleaacqaHZoWzae qaaOWaaeWaaeaacaaIXaGaeyOeI0Iaeq4WdmhacaGLOaGaayzkaaWa aeWaaeaacaaIXaGaeyOeI0IaeqyWdi3aaSbaaSqaaiaadQhaaeqaaa GccaGLOaGaayzkaaGaamyramaaBaaaleaacaWG0baabeaakmaadmaa baWaaeWaaeaacaaIXaGaey4kaSIaamOCamaaBaaaleaacaWG0bGaey 4kaSIaaGymaaqabaaakiaawIcacaGLPaaacaWGqbWaaSbaaSqaaiaa dshacqGHRaWkcaaIXaaabeaaaOGaay5waiaaw2faaaaaaa@9462@