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Homework 5 solution

posted Feb 25, 2012, 10:37 AM by Jim Dolmas
Here's what I get for the eight cases (M-files are attached):

>>> ez_hw_shell

hw_out =

1.00000 0.54451 5.78790

2.00000 3.26731 3.92600

3.00000 1.59097 21.68136

4.00000 5.77248 0.84773

5.00000 0.52521 2.55120

6.00000 3.16072 0.74717

7.00000 1.56741 17.95242

8.00000 5.66508 -2.23606

>>>


The function file illustrates both methods of solving the EZ model---the one you used (where the SDF involves the value function), and the alternative where you substitute the value function out of the SDF using the return on the consumption claim.

ċ
ez_7362.m
(3k)
Jim Dolmas,
Feb 25, 2012, 10:37 AM
ċ
ez_hw_shell.m
(1k)
Jim Dolmas,
Feb 25, 2012, 10:37 AM
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