These comments were initially made in the wrong place but should have been in the [olg] lecture.
Comments @Jiarui-ZH:
[ ] Specify the time t = 2 in the sentence"We assume that time is discrete, so that t = 0, 1, ..."
[ ] Clarify convoluted sentence: “Their financial income is from interest on their savings from wage income, which is then combined with the labor of the new young generation at t+1.”Old guys have savings, which is capital. Production usually needs savings (capital) and labor from young energetic guys (labor).
[ ] Clarify “We normalize the constant population size in each period to 1.”? We assume that the population is constant, so we normalize the population size to 1.
[ ] Delete “Since u is strictly increasing, both of these constraints will hold as equalities at the maximum.” Make inequalities equalities:
for equation 24.2
[ ] Clarify that R is gross interest rate r?
[ ] Rename “24.3.2. Example: log preferences” to special case (“24.3.2. Special case: log preferences”?)
[ ] Explain Equation 24.8 (the logic of it and what each element means)
[ ] Clarify that w_t and l_t in terms of Equation 24.8 and
[ ] Clarify Equation 24.11 where it stresses that aggregate demand for capital for time t+1, which we write as a function for the interest rate.
[ ] For equation (24.14), stress that it is the equilibrium by replacing R(t+1) with R(t+1)^*, for example? Different from star sign because then, we will have too many stars.
[ ] Drop the image below:
But keep
[ ] Have the plots with multiple initial conditions. When k = 0, …
[ ] Have k* and the actual numbers
[ ] List the motivation behind the CRRA preferences
These comments were initially made in the wrong place but should have been in the [olg] lecture.
Comments @Jiarui-ZH:
[ ] Delete “Since u is strictly increasing, both of these constraints will hold as equalities at the maximum.” Make inequalities equalities:![image](https://github.com/QuantEcon/lecture-python-intro/assets/157935657/0496e8c1-4dd0-466c-9068-e2165721b4f4)
for equation 24.2