Solution
ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2014/iii/paper-38/6/d/solution
Past exam of the mathematics course of the University of Cambridge 2014 iii Paper 38 6 d Solution by
Codex 0 Created 2026-10-03 Updated 2026-10-06
Part (c) gives . Since , its integrated identity impliesfor every finite . The cumulative consumption increases with , so the monotone convergence theorem yieldsThis is the infinite-horizon state-price budget constraint. No terminal-wealth convergence or vanishing assumption is needed for this inequality.
New to topics? Read the docs here!