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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−2X 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−1X 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−3X t−1 Decreasing
42 X t−2X t < X t−1 & X t−3X t−1 Decreasing
44 X t X t−1 ≥ max{X t−2, X t−3} Increasing/maintenance