Show that the interest rate in the Campbell-Cochrane-model can be made time dependent of the form? for
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Show that the interest rate in the Campbell-Cochrane-model can be made time dependent of the form?
for some fixed r0, if the steady state surplus consumption ratio is modified to be
What is the fixed steady state rate r0?
Transcribed Image Text:
r = ro + B(5 – S1-1) У у1-ф
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The CampbellCochrane model is a dynamic stochastic general equilibrium DSGE model that describes the behavior of the economy over time In this model t...View the full answer
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