Hi there math experts.
I would like to calculate the equilibrium of two linear equations. However, they're part of a time series, where $a_{-1}$ defines the lagged value of $a$. I don't know how to translate that into to linear equations from which I can calculate the equilibrium.
The system I have is:
$ \log(C)=\log(C_{-1})+0.4\left(\log(Y)-\log(Y_{-1})\right)+0.407\left(\log(Y_{-1}^{0.9}\cdot W_{-1}^{0.1})-\log(C_{-1})\right)\\ W=W_{-1}+Y-C $ where $C$ and $W$ are to be determined (endogene) and $Y$ is constantly maintained at 0.001.
How do I calculated the steady state of the system?
Thanks in advance.
/brinck10