First of all, I would like to apologise for the fact that I will include a link in my question rather than a direct question, however, I have no idea how to do it in a different way.
I have been reading this paper recently: RBC extensions ,
I don't understand one thing completely. On the second page when we are reducing the equation for utility, why cannot we just drop the term: $$\theta \frac{(1)^{1-\xi}-1}{1-\xi}$$ I was wondering how this could possibly work, because common-sensically: $$(1)^{1-\xi}=1 \Rightarrow \theta \frac{(1)^{1-\xi}-1}{1-\xi}=0$$ Am I wrong?
Thank you guys!