New answers tagged asset-pricing
3
As mentioned in the comments this comes down to stylistic choices, since as you correctly pointed out:
$$u(c_t)+\beta E_t[u(c_{t+1})]=E_t[u(c_t)+\beta u(c_{t+1})]$$
However, in principle both expressions are correct. The first expression states that the $U_t(c_t, c_{t+1})$ is a composite function of present utility of consumption $u_t(c_t)$ and expected ...
Top 50 recent answers are included
