# Questions tagged [intertemporal-choice]

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### Partially Sophisticated Quasi-Hyperbolic Discounting Problem

I am trying to follow the bottom method for partially sophisticated hyperbolic discounting... The setup (modified from an earlier problem in the same course) is that a person will get different "...
• 423
47 views

### What are the arguments for and against the supremacy of the current self?

In this video, the professor attempts to explain how the course's motivation of temporal discounting makes (what strikes me as) a pretty extravagant assumption. Now, if you think about your future ...
• 423
1 vote
87 views

### Intertemporal profit maximization

Assume a producer wishes to maximize the net present value, choosing optimal quantities of K and L. variables are time dependent. y is the production function, p is the price of y. K is capital, r is ...
• 31
41 views

### Intertemporal consumption with heterogeneous/multiple goods

I'm currently trying to build a CGE, and I'm stuck at the household's problem which is about intertemporal utility maximisation. The household consumes multiple heterogeneous goods $C_i$ (I'm limiting ...
• 31
181 views

### Intertemporal Utility Optimization For Multiple Goods

I'm building an economic simulation game and I'm trying to solve for the values that a person will spend on each good and the amount they will save in the current period, taking into account all ...
1 vote
203 views

38 views

### Perfectly functioning credit markets and consumer saving

Today in my Macroeconomics lecture, while covering the Real Intertemporal Model with Investment (Chapter 11 of Williamson's Macroeconomics), my professor proponed that a key assumption to not make ...
• 101
303 views

### Meaning of «intertemporal substitution effect dominates the income effect»

Assume a household intertemporal optimisation problem, where they only either consume or labour, and one of the equilibrium conditions states that labour will be a positive function of productivity, ...
1 vote
383 views

### Metzler diagram interpretation

Suppose we have a graph whose axes are r (interest rate) and S/I/Y/whatever. I'm studying intertemporal models right now, and i got a bit confused. According to my textbook, the area underneath S is ...
345 views

### In an intertemporal (2-period) consumption model, why is the investment rate independent of discount factor?

In lecture, my professor defined the following 2-period consumption model: $c_i =$ consumption in period $i$. $y =$ endowed income in period 1. $r =$ interest rate in perfect credit markets. $h =$ ...
• 21
230 views

### Proof that stochastic discount factor is positive in complete markets

I am looking for a reference (with a proof possibly) to understand why the completeness of markets implies that the stochastic discount factor is strictly positive in the context of intertemporal ...
• 718
1 vote
202 views

### Why does Ricardian Equivalence not hold when there are different borrowing and lending rates on the market?

If you can propose any explanation (intuitive, graphical or algebraic), I will appreciate it
• 11
1 vote