Definition of Euler Equations: An Euler equation is a first order condition that is across a time or state boundary. (Across a state boundary means a tradeoff between uncertain events.) That is, a first order condition that is a relation between a variable that has different values in different periods or different states. E.g.

k_t = b(1+r)k_t+1

is an Euler equation, but

2n_t² - 3k_t = 0

is not. (Econterms)

Terms related to Euler Equations:

• Strictly stationary