I would like to know if there is an elegant way to develop a model as :
Ct=cYt−1+C0, It=I0+γ(Ct−Ct−1), Yt=Ct+It
to obtain a resursive equation in Yt which can be put in a natural format to be solved by rsolve()
. I can do it in a brute force way. The problem is to cope with the time index.