Consider the canonical Becker and Murphy (1988) “rational addiction” model Display optimal consumption as a function of
Posted: Sun Jun 05, 2022 4:30 pm
Consider the canonical Becker and Murphy (1988) “rational
addiction” model
Display optimal consumption as a function of S, c(S), for an
addict. Assume that c(0) > 0. Label this function “c(S).”
Indicate the unique positive consumption steady state equilibrium
level of S, labelling it S ∗ .
addiction” model
Display optimal consumption as a function of S, c(S), for an
addict. Assume that c(0) > 0. Label this function “c(S).”
Indicate the unique positive consumption steady state equilibrium
level of S, labelling it S ∗ .