vfitoolkit / IntroToLifeCycleModels

Gradually build up a life-cycle model
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Typo in life-cycle model #1

Closed aledinola closed 1 year ago

aledinola commented 1 year ago

I was reading Section 5.1 of the intro to life-cycle about portfolio choice model with risky assets and the budget constraint is not consistent with the code

In the doc, the budget constraint reads as

c+aprime = (1+r)*a + labor_income

but in the code (Example 31) the term (1+r) is absent. My understanding is that the version in the code is the correct one.

robertdkirkby commented 1 year ago

you are quite right. fixed. thanks.