The optimal value of kt+1 is written as below, and by plugging
this into the first equation
the last equation comes out,
please explain the whole procedure of how i get this
equation
The Optimal Value Of Kt 1 Is Written As Below And By Plugging This Into The First Equation The Last Equation Comes Out 1 (813.4 KiB) Viewed 24 times
A+B Inkt = max [ In (kok+1)+ B (A+B Inkti) kil Lo solve the optimization problem. on the RH.S. 0 K+ → K14 = BBKA B I+BB L and substituty for the optimal kell we get ! = At B Inkt = B B InBB - (1+BB ) In ()+ BB)+BA+C+BB)d Inkt
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