H
henrietta
Member
Assuming inflation from time t to t' is a%, does the following hold for LEV function?
LEV_t'(x) = (1+a%) ^2 * LEV_t(x/(1+a%)).
I can provide with proof if needed.
Thus we deduce for base limit b, we have
LEV_t'(b) = (1+a%) ^2 * LEV_t(b/(1+a%)).
Hence,
ILF_t'(x) =ILF_t(x / (1+a%) ).
This is given in the solution of Q&A bank Q4.2 and used for calculation of Q17(iv) in the second tutorial handout.
Are the above steps correct?
Thanks.
LEV_t'(x) = (1+a%) ^2 * LEV_t(x/(1+a%)).
I can provide with proof if needed.
Thus we deduce for base limit b, we have
LEV_t'(b) = (1+a%) ^2 * LEV_t(b/(1+a%)).
Hence,
ILF_t'(x) =ILF_t(x / (1+a%) ).
This is given in the solution of Q&A bank Q4.2 and used for calculation of Q17(iv) in the second tutorial handout.
Are the above steps correct?
Thanks.