ratio using for loops
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I am still trying to solve it.
for s_ast=(0:1:T)
ratio_1=(y_2^(s_ast+1)*(1-y_2^T)*(1-x_2)*epsilon_2^(s_ast+1))/(x_2^(s_ast+1)*(1-x_2^T)*(1-y_2));
ratio_2=((1-y_1^(s_ast+1))*(1-x_1)*epsilon_1^(s_ast+1))/((1-y_1)*((1-x_1^(s_ast+1)+K^(1/gamma)*x_1^T*(1-x_1))));
ratio_tax(s_ast+1)=ratio_1/ratio_2;
if (ratio_tax>1)
s_asterisk_tax=s_ast(end);
else
continue
end
end
disp(s_asterisk_tax);
As suggested, I simplified using geometric series and I excluded when x_1 and x_2, y_1 and y_2 are equal to 0.
However, I am getting s_asterisk_tax wrong.
What is wrong in my code?
Thank you,
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