From 0ce311e212022bca58a0476f04259912b93e98fa Mon Sep 17 00:00:00 2001 From: Matt McKay Date: Thu, 20 Sep 2018 17:23:46 +1000 Subject: [PATCH] fix rst for compatibility with jupinx --- rst_files/opt_tax_recur.rst | 15 +++++++-------- 1 file changed, 7 insertions(+), 8 deletions(-) diff --git a/rst_files/opt_tax_recur.rst b/rst_files/opt_tax_recur.rst index 3fdf429d..b9f15cab 100644 --- a/rst_files/opt_tax_recur.rst +++ b/rst_files/opt_tax_recur.rst @@ -194,26 +194,25 @@ from the allocation The primal approach uses four steps: - 1. Obtain first-order conditions of the household's problem and solve them for :math:`\{q^0_t(s^t), \tau_t(s^t)\}_{t=0}^\infty` as functions of +1. Obtain first-order conditions of the household's problem and solve them for :math:`\{q^0_t(s^t), \tau_t(s^t)\}_{t=0}^\infty` as functions of the allocation :math:`\{c_t(s^t), n_t(s^t)\}_{t=0}^\infty` - 2. Substitute these expressions for taxes and prices in terms of the allocation +2. Substitute these expressions for taxes and prices in terms of the allocation into the household's present-value budget constraint - * This intertemporal constraint involves only the allocation and is regarded - as an *implementability constraint* + * This intertemporal constraint involves only the allocation and is regarded + as an *implementability constraint* - 3. Find the allocation that maximizes the utility of the representative household +3. Find the allocation that maximizes the utility of the representative household :eq:`TS_prefr_opt_tax` subject to the feasibility constraints :eq:`feas1_opt_tax` and :eq:`TSs_techr_opt_tax` and the implementability condition derived in step 2 - * This optimal allocation is called the **Ramsey allocation** + * This optimal allocation is called the **Ramsey allocation** - 4. Use the Ramsey allocation together with the formulas from step 1 to find +4. Use the Ramsey allocation together with the formulas from step 1 to find taxes and prices - The Implementability Constraint ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^