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.
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.