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add definition block
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lectures/ge_arrow.md

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@@ -206,7 +206,7 @@ where it is understood that $c_t^k = c^k(s_t)$
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and $c_{t+1}^k = c^k(s_{t+1})$.
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```{prf:definition}
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A **recursive competitive equilibrium** is
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an initial distribution of wealth $\vec a_0$, a set of borrowing limits $\{\bar A^k(s)\}_{k=1}^K$,
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a pricing kernel $Q(s' | s)$, sets of value functions $\{v^k(a,s)\}_{k=1}^K$, and
@@ -230,7 +230,7 @@ $\sum_k \hat a_{t+1}^k(s') = 0$
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for all $t$ and $s'$.
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* The initial financial wealth vector $\vec a_0$ satisfies $\sum_{k=1}^K a_0^k = 0 $.
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```
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The third condition asserts that there are zero net aggregate claims in all Markov states.
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