【高级宏观经济学讲义英文原版】Lecture 2 Introduction to dynamic optimization in continuous time.pdfVIP

Lectures in Advanced Macroeconomics wage received during a period of ∆ years is ∆ and the amount consumed during a ∆ year period is ∆ . Thus the budget constraint becomes = (1 + ∆ ) + ∆ ∆ +∆ It follows that +∆ = + ∆ Letting ∆ 0, we get, if we append an initial condition (which is also a constraint)