# Thread:

1. ## Martingale Process

Hi everybody!

$<br /> c_t^\gamma = \beta*rf*E_t(c_{t+1}^{\gamma})<br />$

2. If $\beta=0$ then this is a martingale
Can't you be more precise ? It could be an interesting discussion but we weren't here

3. Originally Posted by Moo
If $\beta=0$ then this is a martingale
Can't you be more precise ? It could be an interesting discussion but we weren't here
The condition for this process to be a mg...

I thought $\gamma\ne 0$ because in this case the function is not integrable. My colleague doesn't agree.

4. But what are all these parameters, what are the conditions, what is c_t ???

5. Originally Posted by Moo
But what are all these parameters, what are the conditions, what is c_t ???
$c_t$ is a stochastic process
$\beta$ is a discount factor $\in (0,1]$
$r_f$ is the risk free that is given (deterministic)
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