This preview shows page 1. Sign up to view the full content.
Unformatted text preview: P T of P is its inverse, such that = P T P is a diagonal matrix of the eigenvalues of . Show that n = P n P T .) b) Show that the unconditional probability that t = l = h = 1/2. c) What is the unconditional expectation of t ? The unconditional variance? The unconditional correlation of t and t +1 ? d) Suppose that u ( C ) = ln C , = 1, and F ( K , L ) = K L 1-. What is the equilibrium consumption function C ( K , A , )?...
View Full Document
This note was uploaded on 01/09/2011 for the course ECON 7140 taught by Professor Kutler during the Spring '10 term at Utah Valley University.
- Spring '10