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Table 4
States s ∈ 
and consumption behavior, coding Z
i,t
– see equation (4).
| State | Event | Trajectory ending X t−1 and X t |
|---|---|---|
| 11 | X t < X t−1 < min{X t−2, X t−3} | Decreasing |
| 13 | X t−1 ≤ X t < X t−2 & X t−1 < X t−3 | Increasing/maintenance |
| 14 | X t−1 < X t−2 ≤ X t & X t−1 < X t−3 | Increasing |
| 21 | X t < X t−1 < X t−2 & X t−3 ≤ X t−1 | Decreasing |
| 23 | X t−3 ≤ X t−1 ≤ X t < X t−2 | Increasing/maintenance |
| 24 | X t−3 ≤ X t−1 < X t−2 ≤ X t | Increasing |
| 31 | X t < X t−2 ≤ X t−1 ≤ X t−3 | Decreasing |
| 32 | X t−2 ≤ X t < X t−1 < X t−3 | Decreasing |
| 34 | X t−2 ≤ X t−1 ≤ X t & X t−1 < X t−3 | Increasing/maintenance |
| 41 | X t < X t−2 ≤ X t−1 & X t−3 ≤ X t−1 | Decreasing |
| 42 | X t−2 ≤ X t < X t−1 & X t−3 ≤ X t−1 | Decreasing |
| 44 | X t ≥ X t−1 ≥ max{X t−2, X t−3} | Increasing/maintenance |