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lectures/ge_arrow.md

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@@ -505,7 +505,7 @@ This follows from agent $k$'s first-order necessary conditions.
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But with the CRRA preferences that we have assumed, individual consumptions vary proportionately
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with aggregate consumption and therefore with the aggregate endowment.
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* This is a consequence of our preference specification implying that *Engel curves* are affine in wealth and therefore satisfy conditions for *Gorman aggregation*
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* This is a consequence of our preference specification implying that *Engel curves* are affine in wealth and therefore satisfy conditions for *Gorman aggregation*
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Thus,
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@@ -588,7 +588,7 @@ even if he consumes zero goods forevermore.
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If we have an Inada condition at zero consumption or just impose that consumption
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be nonnegative, then in a *finite horizon* economy with sequential trading of one-period Arrow securities there is no need to impose natural debt limits.
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See the section on a [finite horizon economy](#finite-horizon) below.
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See the section on a [finite horizon economy](finite_horizon) below.
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```
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@@ -710,7 +710,7 @@ $$ J^k = (I - \beta P)^{-1} u(\alpha_k y) , \quad u(c) = \frac{c^{1-\gamma}}{1-
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where it is understood that $ u(\alpha_k y)$ is a vector.
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(finite_horizon)=
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## Finite horizon
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We now describe a finite-horizon version of the economy that operates for $T+1$ periods

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