# Questions tagged [representative-agent]

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### Clarity about positive and normative representative household

I'd like to understand if I understood theory about representative agent (positive and normative): firstly it is necessary to ensure the existence of a representative household an it depends on the ...
• 41
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### Liquidity puzzle in the representative household model

In a cash in advance representative household model, the nominal interest rate may be determined by $$\frac{1}{1 + i_t}= βE_t\left(\frac{M_t}{M_{t+1}}\right)$$ where $\beta$ is the discount rate. I'...
1 vote
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### DSGE model with agents that develop their skills

Are there DSGE models with agents with different skill levels (and according wage differences) who can develop or lose their skills and with employees with dynamic/changing skill levels and skill ...
• 395
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### Euler's Theorem

Can anyone give me connection and intuition behind each of the following euler's equation- Euler's equation in production function represents that total factor payment equals degree of homogeneity ...
1 vote
292 views

### Perpetual Youth Model

I am reading the famous paper of Blanchard,1985. There are some fundamental stuff that I did not really get. 1) Why they call it "perpetual youth"? 2) On page 225, he mentions the cohort size. So, ...
• 2,105
The budget constraint is $c_t + \tau_t + s_{t+1} =w_t(1-l_t) +(1+r_t)s_t$ And assume $\underset{t \longrightarrow \infty}{lim} \ \displaystyle{\frac{s_t}{\Pi_{i=1}^{t-1} (1+r_i)}} = 0$ Lag ...