I am running a simple model and I have two questions.
- What is the difference between stating
I know one means it holds at any time, and the other hold at expectation. Beyond that what does it really mean? can I use either one if both work ?
- The equation above expressed at (t+1) is the FIRST FOC from a maximization problem. The SECOND FOC is
The question now is can I use the FIRST FOC hold at (t) and the SECOND FOC hold at (t+1) ?? …as:
would I be violating any rules by doing so ?
Ps. ( The reason I do so is that using both at (t+1) in a separate context the BK conditions fail ).