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This pull request makes a series of stylistic and clarity improvements to the lectures/rational_expectations.md file. There are no code changes, as the control problem is solved using quantecon.LQ, for which numpy works well.

Key changes:

Mathematical and technical clarifications:

  • Clarified the meaning of $Y_{t+1}$ in different places.
  • Updated the Euler equation to use the belief function $H$ consistently, and added an equivalent form for clarity.
  • Added an explanation for the failure of contractivity using Blackwell's condition, improving conceptual understanding.
  • Clarified and corrected the law of motion for the case of a unit measure of firms in the first exercise.

Formatting and reference improvements:

  • Converted links to internal documentation references
  • Added a proper definition block.
  • Changed all section and subsection headings to sentence case

@xuanguang-li xuanguang-li changed the title [rational expectations] Update content and styling [rational_expectations] Update content and styling Dec 14, 2025
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📖 Netlify Preview Ready!

Preview URL: https://pr-764--sunny-cactus-210e3e.netlify.app (f2c363d)

📚 Changed Lecture Pages: rational_expectations

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