Content deleted Content added
Line 12:
*Individuals live for '''two''' periods; in the first period of life, they are referred to as the '''Young'''. In the second period of life, they are referred to as the '''Old'''.
*A number of individuals are born in every period. ''N'' <sup>t</sup><sub>t</sub> denotes the number of individuals born in period t.
*<math>N^{t-1}_t </math> denotes the number of old people in period t. Since the economy begins in period 1, in period 1 there is a group of people who are already old. They are referred to as the ''initial old.'' The number of them can be denoted as ''N''<sub>''0''</sub> .
*The size of the initial old generation is normalized to 1: ''N''<sup> 0</sup><sub>0</sub> = 1.
*People do not die early, so ''N''<sup> t</sup><sub>t</sub> = ''N''<sup> t</sup><sub>t+1</sub>.
| |||