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4 changes: 2 additions & 2 deletions lectures/endogenous_lake.md
Original file line number Diff line number Diff line change
Expand Up @@ -310,7 +310,7 @@ But their optimal decision rules determine the probability $\lambda$ of leaving
This is now

```{math}
:label: lake_lamda
:label: endogenous_lake_lambda

\lambda
= \gamma \mathbb P \{ w_t \geq \bar w\}
Expand Down Expand Up @@ -365,7 +365,7 @@ The lump-sum tax applies to everyone, including unemployed workers.
For each specification $(c, \tau)$ of government policy, we can solve for the
worker's optimal reservation wage.

This determines $\lambda$ via {eq}`lake_lamda` evaluated at post tax wages,
This determines $\lambda$ via {eq}`endogenous_lake_lambda` evaluated at post tax wages,
which in turn determines a steady state unemployment rate $u(c, \tau)$.

For a given level of unemployment benefit $c$, we can solve for a tax that balances the budget in the steady state
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