Hi all,

I know this is not directly related to Dynare, but I have a question related to some derivation. I am pretty sure that it must be relatively straightforward but I am stuck for too long and maybe somebody can help me out.

It is about deriving the Kimball demand. I know that @wmutschl already asked a similar question here, which was very helpful, but my problem is a bit different. As there it was about a final good producer and in my case the consumer.

I am trying to replicate Casas et al. (2016),(Dominant Currency Paradigm). My question is how to derive equation (5) from the paper linked. What we normally do is to calculate the household expenditure minimization problem in order to derive the demand function. But when I do that I am just not able to get to that solution.

A very similar form, but with less notation, can be found in Klenow and Willis (2016). There, my problem ist basically identical.

I am happy to provide my derivations, as far as I got, in case anyone is interested.

Would be amazing if somebody could help me solve this mystery

Cheers

PS: In case this is not the place to ask, just let me know.