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Why do the welfare remain the same whether I set the order to 1 or 2?
Stochastic simulations
jpfeifer
October 10, 2022, 8:17am
2
It should be
wel = log(c)+alppha*log(1-n)+betta*wel(+1);
At order=1, mean welfare is
-52.375066873682449
while at order=2, it’s
-52.368865365683639
A question about welfare analysis in Jermann_Quadrini_2012
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