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A Consideration for the Euler Equation in Macroeconomics

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  • Taro Ikeda

    (Graduate School of Economics, Kobe University)

Abstract

This paper considers the problem of the Euler equation in the infinite horizon optimization problem in dynamic macroeconomics. We show that the assumption of the two-period Euler equation in the infinite horizon problem yields the Euler equation for the one-period optimization problem.

Suggested Citation

  • Taro Ikeda, 2019. "A Consideration for the Euler Equation in Macroeconomics," Discussion Papers 1903, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1903
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/neo2019/1903.pdf
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    References listed on IDEAS

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    1. Taro Ikeda, 2018. "An introduction of a simple monetary policy with savings taxation in the overlapping generations model," Discussion Papers 1810, Graduate School of Economics, Kobe University.
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