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

Commit 0914f94

Browse files
committed
fix space and order for a nested list in amss2
1 parent 5801f28 commit 0914f94

File tree

1 file changed

+6
-9
lines changed

1 file changed

+6
-9
lines changed

rst_files/amss2.rst

Lines changed: 6 additions & 9 deletions
Original file line numberDiff line numberDiff line change
@@ -61,26 +61,23 @@ This lecture studies a special AMSS model in which
6161

6262
- the one-period gross interest rate :math:`R_t(s^t)` on risk-free debt converges to a time-invariant function of the Markov state :math:`s_t`
6363

64-
6564
* For a **particular** :math:`b_0 < 0` (i.e., a positive level of initial government **loans** to the private sector), the measurability constraints **never** bind
6665

67-
68-
6966
* In this special case
7067

71-
- the **par value** :math:`b_{t+1}(s_t) = \bar b` of government debt at time :math:`t` and Markov state :math:`s_t` is constant across time and states,
68+
- the **par value** :math:`b_{t+1}(s_t) = \bar b` of government debt at time :math:`t` and Markov state :math:`s_t` is constant across time and states,
7269
but :math:`\ldots`
7370

74-
- the **market value** :math:`\frac{\bar b}{R_t(s_t)}` of government debt at time :math:`t` varies as a time-invariant function of the Markov state :math:`s_t`
71+
- the **market value** :math:`\frac{\bar b}{R_t(s_t)}` of government debt at time :math:`t` varies as a time-invariant function of the Markov state :math:`s_t`
7572

76-
- fluctuations in the interest rate make gross earnings on government debt :math:`\frac{\bar b}{R_t(s_t)}` fully insure the gross-of-gross-interest-payments government budget against fluctuations in government expenditures
73+
- fluctuations in the interest rate make gross earnings on government debt :math:`\frac{\bar b}{R_t(s_t)}` fully insure the gross-of-gross-interest-payments government budget against fluctuations in government expenditures
7774

78-
- the state variable :math:`x` in a recursive representation of a Ramsey plan is a time invariant function of the Markov state for :math:`t \geq 0`
75+
- the state variable :math:`x` in a recursive representation of a Ramsey plan is a time invariant function of the Markov state for :math:`t \geq 0`
7976

8077
* In this special case, the Ramsey allocation in the AMSS model agrees with that in a :cite:`LucasStokey1983` model in which
8178
the same amount of state-contingent debt falls due in all states tomorrow
8279

83-
- it is a situation in which the Ramsey planner loses nothing from not being able to purchase state-contingent debt and being restricted to exchange only risk-free debt debt
80+
- it is a situation in which the Ramsey planner loses nothing from not being able to purchase state-contingent debt and being restricted to exchange only risk-free debt debt
8481

8582
* This outcome emerges only when we initialize government debt at a particular :math:`b_0 < 0`
8683

@@ -781,4 +778,4 @@ Now let's compute the implied mean time to get to within .01 of the limit
781778
print(f"Time to get within .01 of limit = {ttime}")
782779
783780
The slow rate of convergence and the implied time of getting within one percent of the limiting value do a good job of approximating
784-
our long simulation above
781+
our long simulation above

0 commit comments

Comments
 (0)