GE (version 0.1.1)

intertemporal_utility: Intertemporal Utility Function

Description

An intertemporal utility function with constant relative risk aversion.

Usage

intertemporal_utility(x, beta = 1, gamma = 1)

Arguments

x

a vector consists of the instantaneous utility levels of some periods.

beta

the discount factor.

gamma

the coefficient (>=0) in CRRA instantaneous utility function.

Value

A list consists of the intertemporal utility level and the certainty-equivalent instantaneous utility level (i.e. steady-state-equivalent instantaneous utility level).

Examples

# NOT RUN {
intertemporal_utility(c(1, 2, 3), beta = 0.99, gamma = 0.5)
intertemporal_utility(c(1, 2, 3) / 10, beta = 0.99, gamma = 0.5)
intertemporal_utility(c(1, 2, 3) / 10, gamma = 0)
# }
# NOT RUN {
# }