States s ∈ and consumption behavior, codification Y i,t – see equation (5).
|00||X t < X t−1 < X t−2|
|01||X t ≥ X t−1 & X t−1 < X t−2|
|10||X t < X t−1 & X t−1 ≥ X t−2|
|11||X t ≥ X t−1 ≥ X t−2|
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