Variance in equilibrium equations
Posted: Thu May 28, 2015 5:28 pmHello,
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.
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.