Chapter Ten Intertemporal choice 跨时期选择
Chapter Ten Intertemporal Choice 跨时期选择
Structure Present and future values Intertemporal budget constraint Preferences for intertemporal consumption Intertemporal choice Comparative statics Valuing securities
Structure Present and future values Intertemporal budget constraint Preferences for intertemporal consumption Intertemporal choice Comparative statics Valuing securities
Intertemporal Choice Persons often receive income in lumps; e.g. monthly salary How is a lump of income spread over the following month( saving now for consumption later)? Or how is consumption financed by borrowing now against income to be received at the end of the month?
Intertemporal Choice Persons often receive income in “lumps”; e.g. monthly salary. How is a lump of income spread over the following month (saving now for consumption later)? Or how is consumption financed by borrowing now against income to be received at the end of the month?
Present and Future values Begin with some simple financial arithmetic Take just two periods; 1 and 2 Let r denote the interest rate per period
Present and Future Values Begin with some simple financial arithmetic. Take just two periods; 1 and 2. Let r denote the interest rate per period
Future value E.g., if r= 0.1 then $100 saved at the start of period 1 becomes $110 at the start of period 2. The value next period of $1 saved now is the future value of that dollar
Future Value E.g., if r = 0.1 then $100 saved at the start of period 1 becomes $110 at the start of period 2. The value next period of $1 saved now is the future value of that dollar