figuresKocherlakota - 1 -71.35 Figures Value Function V(u0)...

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Unformatted text preview: 1 -71.35 Figures Value Function V(u0) V(u) -71.4 -71.45 -71.5 -71.55 -71.6 -71.65 -71.65 -71.6 -71.55 -71.5 Initial Value (u0) -71.45 -71.4 -71.35 Future Promised Utility ws(u0) -71.35 w1(u0) w2(u0) -71.4 45 line -71.45 -71.5 -71.55 -71.6 -71.65 -71.65 -71.6 -71.55 -71.5 Initial Value (u0) -71.45 -71.4 -71.35 1 Consumption cs(u0) 0.65 c1(u0) c2(u0) 0.6 0.55 0.5 0.45 0.4 -71.65 -71.6 -71.55 -71.5 Initial Value (u0) -71.45 -71.4 -71.35 Value of Promise Keeping Constraint 0.1 0.08 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 -71.6 -71.55 -71.5 Initial Value (V) -71.45 -71.4 2 Value of Incentive Constraints at s=1 0.3 Agent 1 Agent 2 0.25 0.2 0.15 0.1 0.05 0 -0.05 -71.65 -71.6 -71.55 -71.5 Initial Value (V) -71.45 -71.4 -71.35 Value of Incentive Constraints at s=2 0.3 Agent 1 Agent 2 0.25 0.2 0.15 0.1 0.05 0 -0.05 -71.65 -71.6 -71.55 -71.5 Initial Value (V) -71.45 -71.4 -71.35 3 ...
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This note was uploaded on 08/06/2008 for the course ECON 387 taught by Professor Corbae during the Spring '07 term at University of Texas at Austin.

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figuresKocherlakota - 1 -71.35 Figures Value Function V(u0)...

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