How can I plot an equation to its time lag?
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I am using MATLAB to solve an economic model and I would like to plot in a graph consumption in period t+1 and consumption in period t. The equation for consumption is:
where are parameters that I can choose the value but correspond to the sequence defined above. Since I know consumption in period 0, , I can solve for the sequence using a loop. However, I do not know how to plot consumption to its lag in a graph.
Thanks for your help!!
2 Comments
Image Analyst
on 29 Mar 2020
What does "to its lag" mean? If you want to plot consumption, just use the plot() function after the loop.
Answers (1)
darova
on 29 Mar 2020
Use for loops
c(1) = w + (1-b)*(1+r)*a0 + D;
for t = 1:n-1
c(t+1) = (1+r)*(c(t)-ch)*b + ch;
end
plot(1:n,c)
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