RDP 2016-07: The Efficiency of Central Clearing: A Segmented Markets Approach Equation (A1)

L= 𝔼 0 ∑ t=0 ∞ β t { u( c m,t )+ μ m,t [ A m,t + p m,t s m,t−1 +( 1− λ m ) f m,t s m,t−1 + λ m [ M( y m,t ) y m,t +( 1−M( y m,t ) ) f m,t +D( y m,t )max( 0,Z−[ f m,t − y m,t ] ) +( 1−D( y m,t ) )Z ] s m,t−1 − c m,t − p m,t s m,t − λ m s m,t Z− λ m D F t ] } MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@D3BC@