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Suppose that consumption this year is the average of this year's income and last year's consumption; that is Ct = 1 /2 (Yt + Ct1).
Suppose that consumption this year is the average of this year's income and last year's consumption; that is Ct = 1 /2 (Yt + Ct1). Suppose also that the relationship between next year's income and current investment is Yt+1 = kIt for some positive constant k
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
