Variance in equilibrium equations

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Variance in equilibrium equations

Postby bmarkovi » Thu May 28, 2015 5:28 pm

Hello,

I wanted to ask is it possible to have an equilibrium equation of the form

f(E_t(R_t+1)-R_t+1)Q_t S_t + f(E_t(S_t+1)-S_t+1) *(Q_t S_t-N_t)=N_t (non-loglinearized version)

where all variables are endogenous and f is arbitrary function. For example, if f(x)=x^2, I would get variance.

Thank you.
bmarkovi
 
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Re: Variance in equilibrium equations

Postby jpfeifer » Fri May 29, 2015 2:58 pm

------------
Johannes Pfeifer
University of Cologne
https://sites.google.com/site/pfeiferecon/
jpfeifer
 
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Location: Cologne, Germany


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