caption: stochastic income and interest rate
exif: {"Image DocumentName": "Stochastic Income & Interest Rates", "Image ImageDescription": "Solved-out consumption functions useful e.g. c1 = k(r)W. where wealth W = a0(1+r) + y1 + y2/(1 +r) +\u2026. and k(.) is a known function of the real interest rate r. Difficult to derive exact results in PIH-LCH model when income and interest rates are random. Interest rates often assumed constant and point expectations of future income used. Hall\u2019s (1978) insight \u2013 look at Euler equation.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}