Skip to content
This repository was archived by the owner on Apr 24, 2020. It is now read-only.

Commit 0ce311e

Browse files
committed
fix rst for compatibility with jupinx
1 parent bf02110 commit 0ce311e

File tree

1 file changed

+7
-8
lines changed

1 file changed

+7
-8
lines changed

rst_files/opt_tax_recur.rst

Lines changed: 7 additions & 8 deletions
Original file line numberDiff line numberDiff line change
@@ -194,26 +194,25 @@ from the allocation
194194

195195
The primal approach uses four steps:
196196

197-
1. Obtain first-order conditions of the household's problem and solve them for :math:`\{q^0_t(s^t), \tau_t(s^t)\}_{t=0}^\infty` as functions of
197+
1. Obtain first-order conditions of the household's problem and solve them for :math:`\{q^0_t(s^t), \tau_t(s^t)\}_{t=0}^\infty` as functions of
198198
the allocation :math:`\{c_t(s^t), n_t(s^t)\}_{t=0}^\infty`
199199

200-
2. Substitute these expressions for taxes and prices in terms of the allocation
200+
2. Substitute these expressions for taxes and prices in terms of the allocation
201201
into the household's present-value budget constraint
202202

203-
* This intertemporal constraint involves only the allocation and is regarded
204-
as an *implementability constraint*
203+
* This intertemporal constraint involves only the allocation and is regarded
204+
as an *implementability constraint*
205205

206-
3. Find the allocation that maximizes the utility of the representative household
206+
3. Find the allocation that maximizes the utility of the representative household
207207
:eq:`TS_prefr_opt_tax` subject to the feasibility constraints :eq:`feas1_opt_tax`
208208
and :eq:`TSs_techr_opt_tax` and the implementability condition derived in step 2
209209

210-
* This optimal allocation is called the **Ramsey allocation**
210+
* This optimal allocation is called the **Ramsey allocation**
211211

212-
4. Use the Ramsey allocation together with the formulas from step 1 to find
212+
4. Use the Ramsey allocation together with the formulas from step 1 to find
213213
taxes and prices
214214

215215

216-
217216
The Implementability Constraint
218217
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
219218

0 commit comments

Comments
 (0)