Skip to content

Commit 8a7a650

Browse files
Fix non-ascii symbols (#76)
Co-authored-by: HengCheng <79777246+2789372130@users.noreply.github.com>
1 parent a965064 commit 8a7a650

File tree

1 file changed

+2
-2
lines changed

1 file changed

+2
-2
lines changed

lectures/opt_invest.md

Lines changed: 2 additions & 2 deletions
Original file line numberDiff line numberDiff line change
@@ -46,11 +46,11 @@ $$ P_t Y_t - c Y_t - \gamma (Y_{t+1} - Y_t)^2 $$
4646

4747
Combining with the demand curve and writing $y, y'$ for $Y_t, Y_{t+1}$, this becomes
4848

49-
$$ r(y, z, y) := (a_0 - a_1 y + z - c) y - γ (y - y)^2 $$
49+
$$ r(y, z, y') := (a_0 - a_1 y + z - c) y - γ (y' - y)^2 $$
5050

5151
The firm maximizes present value of expected discounted profits. The Bellman equation is
5252

53-
$$ v(y, z) = \max_{y'} \left\{ r(y, z, y) + β \sum_{z} v(y, z) Q(z, z) \right\}. $$
53+
$$ v(y, z) = \max_{y'} \left\{ r(y, z, y') + β \sum_{z'} v(y', z') Q(z, z') \right\}. $$
5454

5555
We discretize $y$ to a finite grid `y_grid`.
5656

0 commit comments

Comments
 (0)