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1 parent a8a0d8d commit 4fbfa40Copy full SHA for 4fbfa40
lectures/lqramsey.md
@@ -693,7 +693,7 @@ def compute_paths(T, econ):
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ns = P.shape[0]
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F = scipy.linalg.inv(eye(ns) - β * P)
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a0 = 0.5 * (F @ (x_vals.T @ Sm.T)**2)[0]
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- H = ((Sb - Sd + Sg) @ x_vals) * ((Sg - Ss) @ x_vals)
+ H = ((Sb - Sd + Sg) @ x_vals) * ((Sg + Ss) @ x_vals)
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b0 = 0.5 * (F @ H.T)[0]
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a0, b0 = float(a0[0]), float(b0[0])
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else:
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