We consider the following mixed four-state model with leisure utility:
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where
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and the following switched four-state model:
for
t=1,5,9,13,. . .
for
t=2,6,10,14,. . .
for
t=3,7,13,15,. . .
for
t=4,8,12,16,. . .
where
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for both models.
Each constant labor can be computed from

and
for state
1

and
for state
2

and
for state
3

and
for state
4
respectively beforehand.
We had better compute each policy function
separately.