Equations Error

[arfathamit]

I went over all the equations in the code again and compared them to the ones in the latex file. I only find an error in equation 1.13 of the latex file, but the one in the code is correct. Equation 13 should be $\epsilon^{b}*((1-\zeta)*(c^{\zeta(1-\sigma)}))*((1-l_{t})^{(1-\zeta)*(1-\sigma)-1})=\frac{(\lambda*w_{t}*(1-\tau_{t}^{l}))}{p_{t}}$.

I have derived some of the FOCs, I will derive the rest of the FOCs and compare them to the ones in the latex file.

[jdebacker]

Thanks for the report @arfathamit! Will get this updated in the docs.

[jdebacker]

@arfathamit Can you confirm whether a $(1+\tau^c_t)$ should be in the denominator on the RHS? $P_t(1+\tau^c_t)$ gives the real, tax inclusive, price of consumption...

[arfathamit]

@jdebacker Sorry, equation 1.13 in the latex file is actually correct! After substituting equation 1.12 into $\epsilon^{b}*((1-\zeta)*(c_{t}^{\zeta(1-\sigma)}))*((1-l_{t})^{(1-\zeta)*(1-\sigma)-1})=\frac{(\lambda*w_{t}*(1-\tau_{t}^{l}))}{p_{t}}$, we indeed get the equation 1.13 in the latex file. So both equations in the latex file and codes are correct.

[arfathamit]

I will still check the rest of the FOCs just to make sure that they are correct.

[jdebacker]

@arfathamit Thanks for confirming.