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Update Auxiliary variables
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Jun 30, 2025
by
Normann Rion
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@@ -129,7 +129,7 @@ ensuring that at most one of the two is active in equilibrium, and that compleme
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if the bound is not binding, the multiplier is zero;
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if the multiplier is strictly positive, the bound is tight.
These multipliers are automatically inserted into the
**
first-order conditions
**
of the agent's problem. For instance, an Euler equation might become:
These multipliers are automatically inserted into the first-order conditions of the agent's problem. For instance, an Euler equation might become:
```
u′(cₜ) = β · (1 + rₜ₊₁) · u′(cₜ₊₁) − MULT_L_a + MULT_U_a
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