This function find the optimal spouses' consumption levels in the second period given their decision to get divorced. There is no optimization involved here; they consume all their income in the second period.
1 2 | period.2.d(S, i, r1, r2, sigma_eta_h = param()$sigma_eta_h,
rho = param()$rho, phi = param()$phi)
|
i |
The marriage index |
r1 |
First period repetition. It is not necessary to be greater than one for the first period. It is needed for taking expectaions, which is required in the second period |
r2 |
Second period repetition. It is needed for taking expectaions, which is required in the second period |
sigma_eta_h |
The husband's variance of transitory shock. If not specified the default is the baseline value specified in the param() |
rho |
The contemporaneous correlation coefficient of the husband and wife income shocks. If not specified the default is the baseline value specified in the param() |
phi |
The ratio of the wife's standard deviation of the transitory shock to that of the husband. If not specified the default is the baseline value specified in the param() |
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