How to enter Jensen's term correctly
Posted: Fri Feb 11, 2011 6:16 am
Hello,
I am working with Epstein-Zin utilities, and I would like to have a term of the form
(E_t(X_{t+1}^alpha))^(beta)
Is the correct way to define Y_t = E_t(X_{t+1}^alpha) and then use Y_t^beta?
Thanks for all the help.
I am working with Epstein-Zin utilities, and I would like to have a term of the form
(E_t(X_{t+1}^alpha))^(beta)
Is the correct way to define Y_t = E_t(X_{t+1}^alpha) and then use Y_t^beta?
Thanks for all the help.