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Math Help - [SOLVED] Confusing first order condition

  1. #1
    Member garymarkhov's Avatar
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    [SOLVED] Confusing first order condition

    The lagrangian is

    L=\sum^{\infty}_{t=0} \beta^tu(c_t)+\sum^{\infty}_{t=0} \lambda_t[f(k_t) +(1-\delta)k_t-c_t-k_{t+1}]

    And apparently one of the FOCs is

    \frac{\partial L}{\partial k_{t+1}} = -\lambda_t + [f_1(k_{t+1})+1-\delta]\lambda_{t+1} = 0

    What's the deal here?
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  2. #2
    Grand Panjandrum
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    Quote Originally Posted by garymarkhov View Post
    The lagrangian is

    L=\sum^{\infty}_{t=0} \beta^tu(c_t)+\sum^{\infty}_{t=0} \lambda_t[f(k_t) +(1-\delta)k_t-c_t-k_{t+1}]

    And apparently one of the FOCs is

    \frac{\partial L}{\partial k_{t+1}} = -\lambda_t + [f_1(k_{t+1})+1-\delta]\lambda_{t+1} = 0

    What's the deal here?
    What is the problem that partial derivative looks right?

    CB
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